Coventree Inc. is making further workforce reductions as part of the continuing orderly wind down of its operations, the company said Thursday.
As previously disclosed, as part of these reductions, Bridget Child is departing as CFO, David Allan is departing as head of capital markets, and Doug Onofrychuk is departing as head of administration, effective immediately.
With these workforce reductions, Coventree currently has four full-time employees, down from a peak of about 80 prior to the August 2007 disruption in the Canadian asset-backed commercial paper (ABCP) market.
Coventree was so badly hurt by the ABCP freeze that it is winding up its business.
Coventree expects that, as a result of the departure of these and other employees, it will pay an aggregate of approximately $4.5 million in severance, termination and other costs in its third quarter ending June 30. Approximately $3.7 million of this amount was included in the restructuring activities charge recorded by the Coventree during the fourth quarter of fiscal 2008. It is expected that the remaining $0.8 million will be recorded as an expense in the Coventree’s third quarter ending June 30.
Coventree’s board of directors appointed Ani Hotoyan-Joly as the new CFO. Hotoyan-Joly is a Chartered Accountant and has worked at Coventree for approximately four years. Prior to joining Coventree, she was vice president and CFO of Swiss Reinsurance Co. Canada.
Coventree CEO resigns as part of wind down process
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