Continental Bank of Canada announces financial results.TORONTO--(BUSINESS WIRE)--Dec. 15, 1995--CONTINENTAL BANK (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic ) Continental Bank of Canada The Continental Bank of Canada was a chartered bank formed in Canada when IAC, a financing company, decided to expand the scope of operations in the 1980s. This small bank struggled for several years before being acquired by Lloyds Bank of the United Kingdom. announced its financial results for the fiscal year ended October 31, 1995 and at the same time has mailed its Annual Report for 1995 to its shareholders. The net income for the year was $221,000 or $0.02 per common share. The net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. of shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. on the books of the Bank at year end was approximately $7 million or $0.52 per share. As previously announced, the Bank reported that the Federal Court of Appeal will hear the appeal by Revenue Canada of the judgment of the Tax Court of Canada The Tax Court of Canada, established in 1983 by the Tax Court of Canada Act, is a superior court which deals with matters involving companies or individuals and tax issues with the Government of Canada. commencing on March 12, 1996. The appeal will be heard in Toronto and the Bank anticipates that it will take up to one week. The Federal Court of Appeal is likely to reserve its judgment for three to six months. The Federal Court of Appeal has a variety of options in rendering its judgment and the outcome of the appeal cannot be determined at this time. Also, it is possible the Supreme Court of Canada The Supreme Court of Canada (French: Cour suprême du Canada) is the highest court of Canada and is the final court of appeal in the Canadian justice system.[1] may grant leave for a further appeal from the decision of the Federal Court. The Bank has previously deposited with the taxation authorities and charged to income all outstanding taxes and interest in dispute. If the judgment of the Tax Court is ultimately upheld and if the result is accepted by provincial revenue authorities, the amount recoverable by the Bank and available for distribution to shareholders as at October 31, 1995, from these deposits would be approximately $47 million net of tax, or about $3.45 per share. In addition, the audited book value of shareholders' equity of the Bank as at October 31, 1995 was approximately $7 million or $0.52 per common share bringing the total that would be available for distribution to shareholders, assuming a favourable resolution of the tax appeal, to approximately $4.00 per common share on a book value basis determined as at October 31, 1995. Actual amounts available for distribution will reflect results experienced until the time the winding-up is completed. After final resolution of the tax appeal, distributions to shareholders will be made as quickly as possible as administrative issues are settled. The Bank should be able to distribute a significant portion of its net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. within two years after the final resolution of the appeal, but an additional period will be required before the Bank is would up and the final distribution is made. The annual meeting of the Bank will be held on Thursday, January 18, 1996 at 11:00 a.m. in the offices of Tory Tory DesLauriers and Binnington, 27th Floor, Aetna Tower, Toronto-Dominion Centre, Toronto. CONTACT: George Begic, 416/864-1019 |
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