MONTREAL, June 17 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT") (TSX: DG.UN) announces that its net asset value
("NAV") per unit as at May 31, 2008, based on an indicative price received
from Deutsche Bank A.G. (the "Bank"), is estimated to be $6.89.
Substantially all of the assets of Global DIGIT consist of three credit
default swaps (the "GD Swaps") and the related collateral, entered into with
MMAI-I Trust ("MMAI"). MMAI, in turn, has entered into three mirror credit
default swaps with the Bank. MMAI has also entered into three other swaps with
the Bank, in respect of which, and in order to purchase the necessary
collateral, MMAI issued asset-backed commercial paper ("ABCP"). Since
August 13, 2007, MMAI has been unable to roll over its maturing ABCP and has
ceased making payments on such maturing ABCP. Since that date, MMAI has also
deposited all amounts owed to Global DIGIT under the GD Swaps in an escrow
account pursuant to the Standstill Agreement entered into by Global DIGIT and
MMAI, as disclosed in the press release issued on September 28, 2007 and which
has been extended from time to time since then. On March 17, 2008, certain
noteholders holding ABCP filed with the Ontario Superior Court of Justice (the
"Court") a plan of compromise and arrangement pursuant to the Companies'
Creditors Arrangement Act in respect of the ABCP of certain issuer trustees,
including the issuer trustee of MMAI-I. On June 5, the plan was sanctioned by
The NAV calculated as at May 31, 2008 reflects all amounts that would
have been paid by MMAI to Global DIGIT under the GD Swaps under normal
circumstances but which are currently being held in escrow and not being paid.
The unpaid amounts have been recorded as accounts receivable.
The NAV on a particular date is equal to the aggregate value of the
assets of Global DIGIT, less the aggregate value of its liabilities. The NAV
does not reflect any potential write-down resulting from the interruption of
payments of MMAI to Global DIGIT under the GD Swaps, nor does it reflect any
potential impairment in the value of the assets of Global DIGIT from any
potential restructuring of MMAI debts or the effect of the proposed
Disengagement Transaction announced on December 24, 2007, as it is not
possible at present to determine if, when and to what extent such payments to
Global DIGIT under the GD Swaps will resume or the effect of any potential
restructuring of any such MMAI debts, nor if and when the proposed
Disengagement Transaction will be completed.
About Global DIGIT
Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swap in respect of portfolios of synthetic corporate exposures,
mortgage-backed securities, asset-backed securities and structured finance
For further information:
For further information: François Rivard, (514) 879-6405,