dividendhound (< 20)

CEP - How does it work?

July 27, 2009 – Comments (0) | RELATED TICKERS: CEP

I read CEP's statements, and came across one that said that it might not distribute enough cash this year to pay tax liabilties of its shareholders - so my takeaway was that you could own shares of this, have them stay the same price or even go up some, but still lose money by getting tagged with your share of CEP's tax liabilities.  The company cannot distribute cash until its loan covenants come in balance. 

Is anyone familiar with this setup - and how does it even work - do you get a statement from them declaring how much you owe, or does your brokerage automatically deduct it, etc.? As a practical matter, is it likely to be a lot?