Global Diversified Investment Grade Income Trust II - The Pan-Canadian Investors Committee for Third-Party Structured ABCP files an application under the CCAA: Effect on Global Diversified Investment Grade Income Trust II - Extension of Standstill Agreement with Silverstone Trust



    MONTREAL, March 31 /CNW Telbec/ - On March 17, 2008, the Pan-Canadian
Investors Committee for Third-Party Structured asset-backed commercial paper
(the "Committee") announced that it had filed an application in the Ontario
Superior Court of Justice under the Companies' Creditors Arrangement Act (the
"CCAA Application"), pursuant to which an initial order was granted, asking
the Court to call a meeting of asset-backed commercial paper noteholders (the
"Noteholders") to vote on the Committee's Plan to restructure 20 of the trusts
(the "ABCP Trusts") covered by last summer's Montréal Accord, affecting
$32 billion of notes (the " Restructuring Plan") (a copy of the Committee's
press release is available on Ernst & Young Inc.'s public website for the ABCP
Restructuring at www.ey.com/ca/commercialpaper).
    Although one of the ABCP Trusts is Silverstone Trust ("Silverstone")
which is the counterparty to the three credit default swaps that Global
Diversified Investment Grade Income Trust II ("Global DIGIT II") (TSX: GII.UN)
has entered into (the "Financial Contracts"), Global DIGIT II wishes to advise
its unitholders that the Financial Contracts remain in effect and are not
affected by the CCAA Application. Furthermore, the previously announced
Agreement in Principle between Global DIGIT II and Silverstone, pursuant to
which Silverstone would effectively be replaced by Deutsche Bank A.G. as
counterparty to the Financial Contracts (the "Disengagement Transaction"), is
part of the CCAA Application.
    Unless and until the Disengagement Transaction is completed, the
previously announced suspension of distributions and redemptions will continue
until conditions otherwise allow for their resumption, which is the objective
of the Trustees.

    Extension of Standstill between Global DIGIT II and Silverstone

    In the present circumstances, the Standstill Agreement entered into with
Silverstone on September 27, 2007 has been extended until April 25, 2008,
being the date on which the Noteholders will be asked to approve the
Restructuring Plan.

    About Global DIGIT II

    Global DIGIT II provides an economic interest in an equity tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities and
synthetic corporate exposures.

    About Silverstone

    Silverstone is a special purpose vehicle rated R-1(high) (short-term) and
AAA (long-term) (such rating being currently under review with developing
implications) by DBRS that funds the purchase of eligible assets by issuing
asset-backed commercial paper, extendible commercial paper and floating rate
notes.




For further information:

For further information: François Rivard: (514) 879-6405;
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust II

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