Court to decide next week if will hear BCE appeal
By Randall Palmer
OTTAWA (Reuters) - The Supreme Court of Canada will decide next week whether to hear an appeal of a lower court decision that could derail the C$34.8 billion ($35.2 billion) plan to take telecoms giant BCE Inc. (BCE.TO: Quote) private.
Bondholders asked the Supreme Court on Friday to reject the telecom giant's request to be allowed to appeal the decision.
The debtholders won a surprise Quebec appeals court decision last week that BCE's privatization was unfair to them as it would lower the value of their debentures.
"There is no doubt that the completion of the plan in its present form will materially prejudice the debentureholders," a group of bondholders said in their submission to the Supreme Court, meeting a court-imposed deadline of the close of business on Friday.
They said their losses collectively exceed 20 percent.
The bondholders also argued that it was unfair to them to shorten the normal timetable for any hearing, and said that in any case the Quebec decision did not raise any issues of national importance that merited the high court's attention.
The Supreme Court, conscious of the June 30 deadline for court approval of what would be the world's largest leveraged buyout, has earmarked June 17 for an oral hearing if it does decide to hear the appeal.
It has also given a clear signal that it would decide in the next several days on whether to hear the appeal, because it has suggested June 6 as a deadline for BCE's written arguments. If it decides not to hear the appeal, the Quebec court ruling stands. Continued...