MONTREAL, Aug. 15 /CNW Telbec/ - The trustee for Ironstone Trust
("Ironstone") has been informed by National Bank Financial ("NBF"), acting as
Financial Services Agent of Ironstone, that Ironstone has been unable to roll
its maturing asset-backed commercial paper and/or extendible notes ("ABCP"),
to fund the repayment of previously issued ABCP which matured on August 13 and
August 14, 2007 and maturing August 15, 2007.
In view of its inability to roll its ABCP, Ironstone has extended all
extendible notes. Ironstone has a short term liquidity arrangement whereby
Canadian Imperial Bank of Commerce ("CIBC") has agreed that in certain
circumstances it will lend senior debt to Ironstone if Ironstone is unable to
sell ABCP to third parties. The proceeds from such transactions would be used
to repay Ironstone's then maturing debt. Ironstone gave notice to request CIBC
to provide liquidity to repay the maturing notes under the liquidity
arrangement. However, CIBC has notified Ironstone that it declined to provide
the requested liquidity.
The trustee is closely monitoring the situation to protect the interests
of stakeholders in Ironstone.
Ironstone 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 and extendible commercial paper.
For further information:
For further information: Money Market Desk, (514) 394-8232; Benoît
Deschamps, (514) 824-1222; http://info.fbn.ca/trusts