MONTREAL, Aug. 14 /CNW Telbec/ - The trustee for Silverstone Trust (the
"Trust") has been informed by National Bank Financial ("NBF"), acting as
Financial Services Agent of the Trust, that the Trust 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
maturing on August 14, 2007.
As a result, the Trust has extended the term of extendible ABCP. The
Trust has a short term liquidity arrangement whereby Deutsche Bank has agreed
that, in market disruption circumstances, it will purchase senior debt or
collateral from the Trust if the Trust is unable to sell ABCP to third
parties. The proceeds from such transactions would be used to repay the
Trust's then maturing debt. The Trust gave notice to request Deutsche Bank to
provide liquidity to repay the maturing notes under the liquidity arrangement.
After the close of markets on August 13, 2007 and again today, Deutsche
Bank notified the Trust that it declined to provide the requested liquidity.
The trustee is closely monitoring the situation to protect the interests
of stakeholders in the Trust.
About the Trust
The Trust 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,