Coventree Provides Update on D&O Insurance Claim

TORONTO, Sept. 14, 2011 /CNW/ -- 
NEX Symbol: COF.H  


TORONTO, Sept. 14, 2011 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree"
 or the "Company") today provided an update on the previously announced
 notice of application filed by Coventree against Navigators Pro, on
 behalf of Lloyds Syndicate 1221 (Millenium Syndicate) (collectively,
 "Navigators Pro"), in connection with Coventree's claim for coverage
 under its directors and officers liability insurance policy with
 Navigators Pro.


Coventree's view of the Navigators Pro policy is that it provided
 coverage to a limit of $5 million for the matters that were the subject
 of the notice of hearing and related statement of allegations issued by
 Ontario Securities Commission staff dated December 7, 2009 (the "Notice
 of Hearing").  Accordingly, the Company notified Navigators Pro of a
 claim under its policy for coverage for Coventree and the individuals
 named in the Notice of Hearing. In response, Navigators Pro advised the
 Company that it believed that it had no obligation under the policy to
 provide coverage in respect of the claims made against Coventree and
 the individuals named in the Notice of Hearing. In October 2010, the
 Company commenced proceedings in the Superior Court of Justice of
 Ontario against Navigators Pro in respect of its claim under the
 policy, and the hearing for Coventree's application was heard in August
 2011.


The Court ruled on September 13, 2011 that the Navigators Pro policy is
 operative and must respond to the claim made by Coventree for coverage
 under that policy. As a result, Coventree intends to continue to pursue
 its claim for coverage in respect of the claims made against Coventree
 and the individuals named in the Notice of Hearing to the $5 million
 limit under the policy.


Navigators Pro has the right to appeal the Court's decision to the
 Ontario Court of Appeal within 30 days of the date of the Court's
 decision. As a result, until the time period for the filing of an
 appeal has passed or, if a notice of appeal is filed, until the appeal
 has been resolved, there can be no assurance regarding when Navigators
 Pro will pay under the policy nor as to whether Navigators Pro will be
 liable to provide coverage at all.


This press release is intended for distribution in Canada only.


Neither the TSX Venture Exchange nor its Regulation Services Provider
 (as that term is defined in the policies of the TSX Venture Exchange)
 accepts responsibility for the adequacy or accuracy of this release.


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p Craig Armitagebr/ The Equicom Group Inc.br/ Tel: [phone] x278br/ Email: a href="mailto:[e-mail]"[e-mail]/a /p p -or- /p p align="left" Ani Hotoyan-Jolybr/ Coventree Inc.br/ Tel: [phone]br/ Email:  a href="mailto:[e-mail]"[e-mail]/a /p 

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