Canada committee seeks vote on ABCP restructuring

Fri Mar 14, 2008 8:14pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

TORONTO (Reuters) - A committee charged with restructuring a troubled sector of the Canadian market for asset-backed commercial paper plans to file a court application on Monday that would allow noteholders to vote on their restructuring plan, the committee said on Friday.

In an evening statement, the committee said it expected to ask the Ontario Superior Court of Justice to call a meeting of the noteholders of the non-bank ABCP so they could vote on the plan, which would restructure some C$32 billion of the notes.

"We see no reason why we would not be in a position to file and are confident that we will be able to submit a plan for a comprehensive and simultaneous restructuring of all affected ABCP that will be of benefit to all noteholders," Committee Chairman Purdy Crawford said in the statement which gave no details on how the deal would work.

If said existing standstill agreements would stay in place. The court filing would "provide noteholders an opportunity to consider fully the Committee's proposal in an informed way."

Large ABCP investors, including Quebec pension fund manager Caisse de depot et placement, financial cooperative Desjardins Group and National Bank of Canada NA.TO, Canada's sixth largest bank, formed the investor committee last August, after Canada's C$33 billion non-bank ABCP market ground to a halt.

But the committee has taken longer than initially expected to iron out details of the complicated restructuring in this portion of Canada's short-term debt markets.

(Reporting by Lynne Olver and Janet Guttsman; Editing by Christian Wiessner)