OTTAWA, Aug. 22 /CNW Telbec/ - In response to the problems affecting the
non-bank asset-backed commercial paper (ABCP) market, NAV CANADA wishes to
advise of its decision to support the purpose of the Montreal ABCP protocol of
August 16, 2007 and to provide a noteholder standstill acknowledgement as
requested by the signatories of the protocol.
NAV CANADA holds approximately $368 million of non-bank R-1 (high) rated
ABCP allocated among its reserve funds and accounts required by its debt
indentures. The Company has approximately $130 million of cash and cash
equivalents not affected by the problems in the non-bank ABCP market. In
addition, it has unrestricted access to $565 million of a 5-year syndicated
credit facility with a group of major Canadian financial institutions that is
presently available and undrawn.
NAV CANADA is currently in compliance with all of its financial covenants
and, based on current information, it does not expect the problems affecting
the ABCP market to have a material adverse impact on its business or its
on-going compliance with financial covenants.
NAV CANADA is monitoring the ABCP situation closely, and will continue
discussions with representatives of signatories of the August 16th Montreal
protocol and others working to remedy the problems in the ABCP market.
NAV CANADA, the country's civil air navigation services provider, is a
private sector, non-share capital corporation financed through publicly-traded
debt. With operations coast to coast, NAV CANADA provides air traffic control,
flight information, weather briefings, aeronautical information services,
airport advisory services and electronic aids to navigation.
For further information:
For further information: John Morris, Director, Communications, (613)
563-7032; Ron Singer, Communications Advisor, (613) 563-7303; Media
Information Line: 1-888-562-8226