Precision Drilling Corporation proceeds with trust conversion
23 Settembre 2005 - 12:37AM
PR Newswire (US)
CALGARY, Sept. 22 /PRNewswire-FirstCall/ -- Precision Drilling
Corporation ("Precision") previously announced on September 7, 2005
that it intended to seek shareholder approval of a plan of
arrangement, which would include reorganizing Precision's existing
operations and holdings into an income trust. Pursuant to the
proposed plan of arrangement, shareholders would also receive a pro
rata share of 26 million common shares of Weatherford International
Ltd. owned by Precision and of up to Cdn $850 million of cash.
Precision has assessed the announcement by Canada's Minister of
Finance, issued on September 19, 2005, stating that the Department
of National Revenue will postpone providing advance income tax
rulings respecting flow-through entity structures. As part of the
trust conversion process, Precision had made an application for an
advance tax ruling seeking as much certainty as possible regarding
the tax consequences of certain elements of its proposed income
trust structure. This ruling request was made in order to receive
complete assurance from the Canada Revenue Agency ("CRA") relating
to a limited number of issues that have previously been ruled on
favourably by the federal tax authorities. Precision is of the view
that given previous precedent, existing published CRA policy and
prevailing law, a ruling is not necessary to proceed with the
conversion to an income trust, and will therefore continue to
proceed with the necessary steps to implement the plan of
arrangement and trust conversion. Precision Drilling Corporation is
listed on the Toronto Stock Exchange under the trading symbols "PD
and PD.U" and on the New York Stock Exchange under the trading
symbol "PDS". DATASOURCE: Precision Drilling Corporation CONTACT:
Hank B. Swartout, Chairman, President and Chief Executive Officer,
4200, 150 - 6th Avenue S.W., Calgary, Alberta T2P 3Y7, Telephone
(403) 716-4500, Fax (403) 264-0251; website:
http://www.precisiondrilling.com/; Archived images on this
organization are searchable through CNW Photo Archive website at
http://photos.newswire.ca/. Images are free to accredited members
of the media. To request a free copy of this organization's annual
report, please go to http://www.newswire.ca/ and click on
reports@cnw.
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