Toronto-based Front Street Capital 2004 said Tuesday it will terminate Front Street Strategic Yield Fund Ltd., unless it obtains certain assurances from the Department of Finance.
The fund manger is looking for “satisfactory assurances” within the next 30 days that the previously announced merger of the fund with Front Street U.S. MLP Income Fund Ltd. (FS U.S. MLP), and the resulting increase in the size of the forward agreements previously entered into by FS U.S. MLP, will not have adverse tax consequences for the that fund’s shareholders in light of the proposed changes in tax law announced in the recent federal budget.
Front Street says if no such assurances are received by July 11, the merger will not be implemented and Front Street Strategic Yield Fund Ltd. will terminate on August 12.