Series S-1 Income Fund

Series S-1 Income Fund
Citadel S-1 Income Trust Fund

Citadel S-1 Income Trust Fund
Citadel Stable S-1 Income Fund

Citadel Stable S-1 Income Fund

April 09, 2009 17:45 ET

Citadel S-1 Income Trust Fund, Series S-1 Income Fund and Citadel Stable S-1 Income Fund Call Special Meetings of Unitholders to Consider Proposal

CALGARY, ALBERTA--(Marketwire - April 9, 2009) - On February 25, 2009, each of Citadel S-1 Income Trust Fund (TSX:SDL.UN) ("S-1"), Series S-1 Income Fund (TSX:SRC.UN) ("Series S-1") and Citadel Stable S-1 Income Fund (TSX:CSR.UN) ("Stable S-1" and, together with S-1 and Series S-1, collectively the "Funds") announced that Standard & Poor's Ratings Services had withdrawn its Canadian 'SR-1' stability rating in respect of the Funds in response to evolving market issues affecting Canadian income funds.

At that time, management of each of the Funds indicated that it was preparing a proposal that would address the loss of the 'SR-1' stability rating of the Funds, as required by the declaration of trust of each of the Funds, and that further information would be provided by way of a subsequent update as and when the proposal was developed.

Having considered a number of alternatives, management is now in the final stages of structuring the proposal with the dual objectives of addressing the loss of the SR-1 stability rating for each of the Funds and the obligation, in respect of Series S-1, of proposing to unitholders an alternative to termination on or before six months prior to the Series S-1 termination date of December 31, 2009.

In light of those objectives, the Funds have called special meetings of their unitholders for June 5, 2009, at which unitholders will be asked to consider and vote on the definitive proposal. Management anticipates having the material terms of that definitive proposal resolved shortly, at which time a further press release will be issued.

Contact Information

  • Citadel Group of Funds
    Joe MacDonald
    Executive Vice President, Sales and Marketing
    Citadel Group of Funds
    Andrea Kladar
    Vice President, Sales and Marketing Western Region