Pan-Canadian Investors Committee Announces Framework for Restructuring of Third-Party ABCP



    TORONTO, Dec. 14 /CNW Telbec/ - The Pan-Canadian Investors Committee for
Third-Party Structured Asset Backed Commercial Paper today announced that
substantial progress has been achieved in establishing a framework to
restructure the ABCP issued by the 21 remaining trusts covered by the Montreal
Accord.
    The Investors Committee is working to settle certain issues and to
finalize the term sheets as well as the syndication of a margin funding
facility required to support certain of the restructured assets. The Investors
Committee remains on target for closing on or before March 14, 2008 and,
accordingly, has also agreed to a further extension of the standstill until
January 31, 2008 to enable finalization of the terms of the restructuring
plan.
    The restructuring aims to replace the ABCP with notes having a maturity
similar to the maturity of the underlying assets and will address the margin
call requirements of certain of the trusts. Providing liquidity for
noteholders requiring it and transparency for all noteholders continue to be
priorities for the Investors Committee.

    
    Proposed elements of the restructuring under consideration include:

    - A comprehensive and contemporaneous restructuring with distinct
      solutions for (i) ABCP which is supported solely by traditional,
      unleveraged assets (approx. $3 billion), (ii) ABCP which is supported
      by leveraged assets, unleveraged synthetic assets or a combination of
      leveraged and unleveraged assets (approx. $27 billion) and (iii) ABCP
      which is supported primarily by U.S. subprime
      assets (approx. $3 billion).

    - The replacement of mark-to-market triggers by more remote spread loss
      triggers.

    - A margin call credit facility to further enhance the credit quality of
      the new notes.

    - An investment grade rating of the restructured notes.

    The Committee has been advised that the Canadian banks are willing to
consider measures where they can assist in the restructuring process.
    "I am gratified by the progress that all parties have made in addressing
the key issues affecting our restructuring," said Purdy Crawford, Chairman of
the Investors Committee. Mr. Crawford added that "We have come a long way
towards a successful outcome. I encourage our ABCP investors to allow us a
short time longer to finish the task. The Investors Committee remains
committed to delivering a final implementation of our restructuring in the
first quarter of 2008 and I have every confidence we will get there."
    As of September 14, 2007, these 21 trusts had approximately $33 billion
(principal amount) of outstanding ABCP. Skeena Capital Trust, the only other
trust covered by the Montreal Accord, is in the process of finalizing its
restructuring, which is expected to be completed by December 19, 2007.
    The Investors Committee will make a further announcement concerning the
details of the restructuring following agreement on definitive term sheets
with all key stakeholders. An information package (including a comprehensive
information circular) with all necessary disclosure regarding the
restructuring and its impact on the holders of the ABCP of each trust will
also be mailed to all holders of ABCP following such agreement.
    




For further information:

For further information: NATIONAL Public Relations (Media): Toronto:
David Weiner, (416) 848-1633; Montreal: Mark Boutet, (514) 843-2385, Cell.:
(514) 944-5393; Ernst & Young Inc. (Investors): Pierre Laporte, (514)
874-4383

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