Global Diversified Investment Grade Income Trust II - Possible solution to liquidity problem of Silverstone Trust



    MONTREAL, Aug. 16 /CNW Telbec/ - The Trustee for Global Diversified
Investment Grade Income Trust II ("Global DIGIT II") announces that an
important press release was issued earlier today by a number of major players
in Canada's financial markets outlining a possible solution to the liquidity
problem for the asset-backed commercial paper market. In the event that the
arrangements set out in the press release for the Long Term Proposal and the
Interim Agreement are implemented, this could resolve the current inability by
Silverstone Trust ("Silverstone") to renew or replace its maturing short-term
debt. For reference purposes, copy of the press release is reproduced below.
    Silverstone is the counterparty to swaps entered into by Global DIGIT II
which, together with financial assets related to such swaps, form most of the
assets of Global DIGIT II.
    Global Digit II understands that Silverstone will reevaluate the
situation as the events develop. The Trustee is closely monitoring the
situation to protect the interests of the stakeholders in Global DIGIT II.

    About Global DIGIT II

    Global DIGIT II provides an economic interest in a mezzanine 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) by DBRS that funds the purchase of eligible assets by issuing
asset-backed commercial paper, extendible commercial paper and floating rate
notes.


    
    PRESS RELEASE ISSUED EARLIER ON AUGUST 16, 2007
    -----------------------------------------------

         A GROUP OF FINANCIAL INSTITUTIONS AGREE ON A SOLUTION TO THE
     LIQUIDITY PROBLEM ON THE STRUCTURED FINANCE ASSET-BACKED COMMERCIAL
                                 PAPER MARKET


    MONTREAL, Aug. 16 /CNW Telbec/ - A number of major players in Canada's
financial markets met today in Montréal to work out a solution to the
liquidity problem affecting the third party structured finance asset-backed
commercial paper ("Third Party ABCP") market in Canada being those conduits
listed in Annex A. The following institutions were present: ABN AMRO, Barclays
Capital, Caisse de dépôt et placement du Québec, Desjardins Group, Deutsche
Bank, HSBC, PSP Investments, Merrill Lynch, National Bank and UBS
(collectively the "Signatories").

    DBRS was present for these discussions.

    The Signatories have agreed in principle to the Long Term Proposal and
Interim Agreement set out below and to work together in good faith with the
other participants in the discussions to bring about the timely implementation
of these arrangements. The institutional investors who are Signatories are
confident that they have the support of investors who, together with them,
hold at least 66 2/3% of all outstanding Third Party ABCP. The Signatories are
also confident that additional market participants will confirm their
agreement with these arrangements within the next few hours. In addition, the
Signatories understand that the sponsors of the Third Party ABCP conduits
support the objectives of this initiative.

                                  AGREEMENT

    Purpose

    The purpose of these arrangements is to help establish normal operations
in the Canadian Third Party ABCP market.

    Long Term Proposal

    The general agreements summarized below will have to be adapted to the
circumstances of each Third Party ABCP conduit, however they define a
framework for the restructuring of these conduits.

    1. All outstanding Third Party ABCP, including extendible Third Party
       ABCP, will be converted into term floating rate notes (FRNs) maturing
       no earlier than the scheduled termination date of the corresponding
       underlying assets (together with pay through notes for Third Party
       ABCP conduits which have mixed traditional and CDO assets).
    2. Existing liquidity facilities will therefore not be necessary and will
       be cancelled and all outstanding liquidity calls will be revoked.
    3. Interest on the FRNs will be payable monthly or quarterly, as the case
       may be, to match the fixed payment dates under the underlying assets.
    4. Margin provisions will be revised to create renewed stability, thereby
       reducing the likelihood of near term margin calls.

    Interim Agreement

    The Signatories have agreed as follows:

    1. Holders of Third Party ABCP who are Signatories will continue to roll
       their Third Party ABCP during the period ending 60 days following the
       date of this Agreement (the "Standstill Period").  For greater
       certainty this commitment is limited to Third Party ABCP beneficially
       owned by the Signatories.
    2. The Signatories will encourage all other holders of Third Party ABCP
       to continue to roll their Third Party ABCP.
    3. Signatories who are counterparties of the Third Party ABCP conduits
       will not pursue any existing margin calls or make any further margin
       calls during the Standstill Period.
    4. The Third Party ABCP conduits will agree not to pursue any existing
       liquidity calls during the Standstill Period or make any further
       liquidity calls for 150 days after the Standstill Period.
    5. All Signatories will encourage all other Third Party ABCP market
       participants, including note trustees, to take all actions to
       implement the long term proposal and to refrain from taking any
       actions that will hinder the implementation of the long term
       proposals.

    Process and Timing

    Implementing the ultimate resolution will generally require noteholder
meetings and in some cases may require court applications. Although these
processes will need to be carried out on a conduit by conduit basis, it is
expected that all necessary steps to give effect to each restructuring will be
completed within 30 to 60 days.
    Ernst & Young has been appointed to assist in the implementation of these
arrangements. Holders of ABCP who would like to participate in the
implementation of the Long Term Proposal should contact Pierre Laporte of
Ernst & Young at the following telephone number: (514) 875-6060.

    Further information is available at:
    www.ey.com/global/content.nsf/Canada/Canadian_commercial_paper.


                                   ANNEX A
                          THIRD PARTY ABCP CONDUITS

                                 Apollo Trust
                                 Aurora Trust
                                 Comet Trust
                                 Encore Trust
                                 Gemini Trust
                                 MMAI-I Trust
                                 Planet Trust
                                 Rocket Trust
                                 SLATE Trust
                       Structured Investment Trust III
                                 Apsley Trust
                                 Aria Trust
                               Devonshire Trust
                               Foundation Trust
                               Ironstone Trust
                                 Opus Trust
                            Selkirk Funding Trust
                              Silverstone Trust
                             Skeena Capital Trust
                           Structured Asset Trust
                               Symphony Trust
                               Whitehall Trust
                           Newshore Canadian Trust
    

    For further information: NATIONAL Public Relations: Roch Landriault:
    (514) 843-2345, Cell.: (514) 249-4537




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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