Resolve Business Outsourcing Income Fund
TSX : RBO.UN

Resolve Business Outsourcing Income Fund

November 19, 2008 08:53 ET

Resolve Announces a Distribution Change

TORONTO, ONTARIO--(Marketwire - Nov. 19, 2008) -

Attention Business and Financial Editors:

The Trustees of Resolve Business Outsourcing Income Fund (TSX:RBO.UN) announced today that, until further notice, monthly cash distributions to its unitholders will be suspended. The October 2008 distribution will be paid as previously announced.

The Trustees believe that the suspension of distributions is prudent in light of Resolve's need, in the current economic and market environment, to maximize cash available for growth capital expenditures and to provide ongoing capital flexibility.

While the fundamentals of Resolve's business remain sound, the Trustees believe that a conservative approach should be taken in managing the Fund's cash flow and debt levels to ensure the availability of cash required to maintain the business and fund growth opportunities while also providing for ongoing compliance with the terms of Resolve's credit facilities. This step is being taken in the light of the current economic downturn that has negatively impacted Resolve's access to and cost of capital and is impacting certain of Resolve's businesses more than was expected.

The Trustees will provide further updates as circumstances warrant.

Resolve works with businesses as an outsourced resource taking on critical processes and managing them better, faster and more cost-effectively. We have over 35 years of experience managing processes for Fortune 500 clients in the financial services, retail, government, consumer goods and communications industries. Headquartered in Toronto, Canada, Resolve employs more than 5,100 people in 29 locations and is listed on the Toronto Stock Exchange as Resolve Business Outsourcing Income Fund, symbol RBO.UN. For more information, visit www.resolve.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This press release may include certain statements that constitute forward-looking statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Fund or Resolve, or industry results, to be materially different from any future results, performance or achievements or opportunities expressed or implied by such forward-looking statements. When used in this press release, such statements use such words such as "may," "will," "expect," "believe," "intend," "plan," "could" and other similar terminology. These statements reflect current expectations regarding future events and operating performance. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, loss of key customer contracts or reduction of services purchased by key customers, foreign exchange rates, increases in costs to Resolve that cannot be passed on to customers, disputes with key customers, competition, the ability of Resolve to manage operations and execute growth strategies, stability of internal and government information systems and technology, technological changes, the ability to maintain software licences, changes in privacy laws and risks inherent in bidding on government contracts. Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, neither the Fund nor Resolve can assure that actual results will be consistent with this forward-looking statements. These forward-looking statements are made as of the date of this press release. Neither the Fund nor Resolve has any obligation to update or amend the forward-looking statements in this press release except as required by law.

Contact Information

  • Resolve Corporation
    Jamie Hyde
    Chief Financial Officer
    (905) 306-6200
    Website: www.resolve.com