Heating Oil Partners Income Fund

Heating Oil Partners Income Fund

February 06, 2006 10:00 ET

Heating Oil Partners Income Fund Announces Pending Cease Trade Order

TORONTO, ONTARIO--(CCNMatthews - Feb. 6, 2006) - Heating Oil Partners Income Fund (the "Fund") (TSX:HIF.UN) announced today that it has been advised by staff of the Ontario Securities Commission (the "OSC") that, in accordance with OSC Policy 57-603, CSA Staff Notice 57-301 and the disclosure contained in the Fund's December 28, 2005 press release and related material change report, the OSC will issue an issuer cease trade order upon the Fund's failure to file its December 31, 2005 interim financial statements, which are due on March 1, 2006. Under an issuer cease trade order, all trading in the Fund's securities is ceased permanently, or for such other period as is specified in the order. The possibility of such an action by the OSC was noted by the Fund in its December 28, 2005 press release. The Fund expects that other Canadian securities regulatory authorities will issue comparable orders.

On September 26, 2005 (the "Petition Date"), the Fund's principal operating subsidiary, Heating Oil Partners, L.P. (the "Company"), and certain other affiliates of the Fund filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code and obtained recognition of those proceedings in Canada under the Companies' Creditors Arrangement Act. In the Fund's December 28, 2005 press release, it disclosed that, given the level of the Company's pre-Petition Date secured debt, which ranks ahead of the Fund's indirect investment in the Company, it is the Fund's expectation that unitholders will not receive any consideration in respect of the Fund's investment in the Company upon completion of the restructuring process. The investment in the Company is the Fund's only material asset. Consequently, subsequent to the release of the September 30, 2005 financial results, the Fund no longer intends to file annual and interim financial statements and the related management's discussion and analysis or annual information forms in accordance with applicable Canadian securities legislation, in view of the expense and diversion of management resources associated with the continuation of such filings. The Fund will continue to file news releases and material change reports in accordance with the timely disclosure requirements of applicable Canadian securities laws, and intends to file other material information concerning its affairs as provided in Ontario Securities Commission Policy 57-603 during the periods in which it is otherwise in default of applicable financial statement filing requirements.

This news release contains forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors outside of management's control that could cause actual results to differ materially from those described in the forward-looking statements. The Fund does not assume responsibility for the accuracy and completeness of these forward-looking statements and does not undertake the obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Additional information concerning the Fund, including its complete financial statements for the year ended September 30, 2005 and the accompanying management's discussion and analysis, can be found at www.sedar.com or on the Fund's website at www.hif-un.com.

Contact Information

  • Heating Oil Partners, L.P.
    Carlos Rojas
    Chief Financial Officer
    (203) 655-8290