The Pan-Canadian Investors Committee for Third-Party Structured ABCP announced late Friday that it expects to file an application on March 17, 2008 in the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) asking the Court to call a meeting of ABCP noteholders to vote on the Committee’s plan to restructure 2 of the trusts covered by last summer’s Montreal Accord, affecting $32 billion of notes.
“Given the progress we have made in resolving the outstanding issues, and the good relations with all stakeholders, we see no reason why we would not be in a position to file and are confident that we will be able to submit a plan for a comprehensive and simultaneous restructuring of all affected ABCP that will be of benefit to all noteholders,” said Committee Chairman Purdy Crawford, in a release. “Doing so will also continue the protections to date kept in place under consensual standstill arrangements and provide noteholders an opportunity to consider fully the Committee’s proposal in an informed way.”
Under the restructuring plan announced in December, noteholders would benefit from an improvement in the potential for value recovery over time, a lower risk of margin calls, investment grade credit ratings for the vast majority of the new notes, and improved transparency with regard to the underlying assets, according to the committee.