A committee chaired by Imasco’s former chairman and CEO, lawyer Purdy Crawford, has been formed to oversee the proposed structuring process of the third-party asset-backed commercial paper(ABCP).
The committee includes investors who were signatories to the so-called “Montreal Proposal”, plus other significant holders.
“Our investor committee will be looking to implement a solution that addresses the best interests of investors generally,” Crawford said “and at the same time allows for a successful restructuring and a return to market stability for these investments.”
The Montreal Proposal aims to minimize losses in the approximately $35 billion third-party ABCP market, which has suffered as a result of a global credit crunch.
Clay Horner, a partner with Osler, Hoskin & Harcourt LLP said the appointment of his colleague is a smart move. “Creating an independent body led by such a credible, experienced and wise person who understands business, the law, and the art of deal-making and compromise is a good start. It’s a recognition that the issues are complex.”
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Crawford was tapped by the federal government to act as a special advisor when Dome Petroleum went through the then-world’s largest corporate restructuring. In 1983, the company owed about $6.3 billion to 50 financial institutions.
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