TORONTO, Oct. 16 /CNW Telbec/ - Note holders in Skeena Capital Trust will
be receiving a return of their capital and, net of certain costs of the
proposed restructuring, payment of accrued interest under the terms of an
agreement in principle announced today for the restructuring of Skeena Capital
Trust. The agreement was negotiated among Skeena's Administrative Agent,
Dundee Securities Corporation, its Co-Financial Arrangers, Edenbrook Hill
Capital and Dundee Securities Corporation, the bank counterparties which
provided assets to Skeena, as well as the Pan Canadian Investors Committee
chaired by Purdy Crawford.
Under the proposed restructuring plan, all $2.1 billion of notes
outstanding, covering "A" notes, "E" notes and term floating rate notes held
by investors, will be redeemed at par plus a portion of the accrued interest;
the amount of interest paid is proposed to be reduced by certain costs of the
restructuring. Funding for this restructuring will be provided through the
issuance of long term floating rate notes, issued by a new trust established
for this purpose, to new investors which have been identified with the
assistance of the bank counterparties and the Investors Committee.
"We are pleased to have come to a solution that addresses the short term
liquidity needs of investors while preserving the full value of their
investment in Skeena Capital Trust," said Mr. Purdy Crawford. "This
restructuring respects the key elements first disclosed on August 16, 2007 as
part of the Montreal Accord. The restructuring of this first trust also
clearly illustrates the level of cooperation between all parties to work
constructively at finding a solution to the liquidity problem affecting the
structured finance third party asset-backed commercial paper. We are
continuing to work actively at finding solutions that address the needs and
specific circumstances of the different conduits. "
Mr. Crawford emphasized that "the substance and timing of the
restructuring of Skeena are attributable in part to the unique facts and
circumstances applicable to it. Alternative solutions will be required to
effect successful restructurings of other conduits."
Mr. Kym Anthony, the President and Chief Executive Officer of Dundee
Securities Corporation said, "We are committed to preserving and protecting
the interests of Skeena investors and we are very pleased to be able to offer
this restructuring solution to them. We are grateful to all of the
participants in our negotiations for the level of cooperation and goodwill in
working towards this solution."
The proposed restructuring, including the redemption of the notes, is
subject to the execution of definitive documentation, due diligence and
certain conditions including the final placement and rating of the notes and
is expected to be completed by, or shortly after, the end of October 2007.
Investors in Skeena's asset backed notes will be sent further information
regarding the terms of the proposed restructuring within the next several
days, including the timing and manner of payment for their existing notes.
For further information:
For further information: NATIONAL Public Relations: Toronto: David
Weiner, (416) 848-1633; Montreal: Mark Boutet, (514) 843-2385; Pierre Laporte,
Ernst & Young Inc. (Investors), (514) 874-4383; Geoff Sinclair, Skeena Capital
Trust, (416) 840-8155