Canada appeal court upholds ABCP restructuring plan

Mon Aug 18, 2008 5:38pm EDT
 
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TORONTO (Reuters) - The Ontario Court of Appeal has upheld a lower court's approval of a restructuring plan for asset-backed commercial paper that was worth C$32 billion ($30.2 billion) before the market froze a year ago, putting investors a step closer to recovering at least some money.

The ruling released on Monday is a blow for corporate noteholders who had objected to the restructuring plan for nonbank-sponsored commercial paper, known as ABCP.

This segment of the short-term debt market seized up in August 2007 as concerns grew about U.S. subprime mortgages.

($1=$1.06 Canadian)

(Reporting by Lynne Olver, editing by Peter Galloway)