The Pan-Canadian Investors Committee for Third-Party Structured ABCP said it will give noteholders more time to examine and consider the merits of the restructuring plan given the complexity of the restructuring.
“As a result, a meeting of noteholders is expected to occur in mid-April, with a closing toward the end of April 2008,” it said in a statement on Friday evening.
Under the terms of the proposed restructuring plan, which deals with 20 of the trusts covered by last summer’s Montreal Accord, and approximately $33 billion of the $35 billion of outstanding third-party asset-backed commercial paper in Canada, most noteholders can expect to receive full principal repayment if they hold the new restructured notes to maturity of the underlying assets.
“Negotiations with Canadian banks on the definitive terms of their participation in the margin funding facility are continuing,” the committee’s chairman, Purdy Crawford said. “We remain optimistic that they will support our restructuring plan as participants in this facility.”
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The committee continues to pursue a number of measures to encourage the development of liquidity for the restructured notes following completion of the restructuring.
It hopes and expects that the full transparency of the underlying assets supporting these notes, upon on before closing of the restructuring, will facilitate trading.
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