Global Diversified Investment Grade Income Trust II - Announces Agreement in Principle

    MONTREAL, Dec. 24 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that it and
Silverstone Trust ("Silverstone") have signed an Agreement in Principle to
negotiate in good faith a transaction pursuant to which Silverstone would
effectively be replaced by Deutsche Bank AG (the "Bank") as counterparty to
the three credit default swaps (financial contracts) that are presently
between Global DIGIT II and Silverstone (the "Disengagement Transaction").
    Completion of the Disengagement Transaction is subject to formal
documentation and certain consents and approvals, including the approval of
the creditors of Silverstone, the approval of the Bank and a final approval of
the trustees of Global DIGIT II and of Silverstone. There can be no assurances
that all such approvals will be obtained or that the Disengagement Transaction
will otherwise be completed. In particular, the approval of the creditors of
Silverstone will largely depend on whether or not such creditors approve the
restructuring plan for third party asset-backed commercial paper, as
contemplated in the press release dated December 23, 2007 issued by the
Pan-Canadian Investors Committee for Third Party Structured Asset Backed
Commercial Paper (the "ABCP Restructuring").
    If and when the Disengagement Transaction is completed, distributions and
redemptions would resume, and it is anticipated that the distributions would
generally be at the same level as was previously the case (subject to losses
in any of the portfolios of reference obligations and restructuring costs
which cannot presently be assessed), until the next reset date (being March 2,
2010). As a result of the Disengagement Transaction, the $0.37 that has been
accrued for recovery of issue costs would be remitted by Silverstone to Global
DIGIT II, but the balance of $0.28 not yet accrued would not be recovered.
Funds available to pay distributions and redemptions would flow directly from
the Bank, and would no longer be dependant on Silverstone's ability to renew
or replace its outstanding indebtedness or otherwise be subject to any claim
by Silverstone to withhold payments to Global DIGIT II. Funds presently held
in escrow under the standstill agreement between Global DIGIT II and
Silverstone would be released to Global DIGIT II. The Disengagement
Transaction would be expected to become effective on the date that the ABCP
Restructuring becomes effective.
    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.

    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, synthetic
corporate exposures and other fixed-income securities.

    About Silverstone

    Silverstone is a special purpose vehicle rated R-1(high) (short-term) and
AAA (long-term) by DBRS that funds the purchase of eligible assets by issuing
asset-backed commercial paper, extendible commercial paper and floating rate

For further information:

For further information: François Rivard, (514) 879-6405,

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Global Diversified Investment Grade Income Trust II

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