The global credit crunch claimed a Canadian victim yesterday, as financing company Coventree Inc. reported that it is having trouble finding investors.

Coventree reported yesterday that that, “as result of the current unfavourable conditions in the Canadian asset-backed commercial paper (ABCP) market, it has been unable to place new ABCP to fund the repayment of previously issued ABCP maturing today.”

As a result of this market disruption, it has extended the term of extendible ABCP (also known as E notes) in the aggregate amount of $250 million issued by all Coventree-sponsored ABCP conduits including Apollo, Aurora, Comet, Gemini, Planet, Rocket, Slate, SIT III and SAT. It has also issued notices requesting funding under liquidity facilities that support the liquidity-backed ABC (also known as A notes) issued by all such conduits other than Apollo in the aggregate amount of $700 million.

In a statement the company said “In recent weeks, the market value of many investments around the world has fallen beginning with U.S. subprime mortgage loans and related securities and then spreading outwards. In Coventree’s view, problems that initially seemed isolated to a few U.S. subprime mortgage lenders have led to broader concerns relating to debt capital markets generally, including the Canadian ABCP market. Coventree believes that some investors are reducing or eliminating their investments in the Canadian ABCP market, including ABC issued by conduits sponsored by companies such as Coventree.”

It added: “At this time, Coventree is unable to predict how long the current market disruption will continue or the extent of the impact of this market disruption on Coventree’s financial results and financial condition. The company has A notes and E notes maturing on a daily basis. If the market disruption continues, Coventree will have to extend additional E Notes and make further draws on its liquidity.”

Coventree sponsors and administers asset-backed commercial paper (ABCP) conduits that in the aggregate have approximately $16 billion in fundings outstanding, of which approximately $7.7 billion are A notes and $7.3 billion are E notes.