The Ontario Superior Court of Justice has delayed making a decision on the plan to restructure $32-billion of third-party asset-backed commercial paper under the Companies Creditors Arrangement Act (CCAA), the Pan-Canadian Investors Committee for Third-Party Structured ABCP announced Friday.

In his decision, Justice Colin Campbell said that the plan represents a laudable business solution. He held that the master release provided in the plan, insofar as it would bar claims against third parties for negligence relating to ABCP, may well be appropriate under the CCAA, according to a news release from the committee.

However, to the extent the release could extend to fraud claims, he adjourned the matter for further submissions as to whether the plan can be approved, and, in particular, whether there could be a process within the CCAA to deal with legitimate, specific and particularized claims of noteholders for fraud, if any, against various parties in connection with ABCP.

He stated that, if the parties can agree on a dispute resolution process within the ambit of the CCAA to deal with serious claims of fraud, the plan can go forward immediately. He directed the parties to return to Court to report on the proposals, if any, for resolving potential claims in fraud by no later than May 30, 2008.

The judge also asked that a hardship consideration process to deal with the special circumstances, including “some elderly individuals and families holding through corporations their entire family savings,” be considered by the Committee and reported on to the Court.

“We look forward to working with the Monitor and other stakeholders to see if a process can be developed that meets the concerns raised by the Court so that the Plan may be sanctioned and implemented as soon as possible for the benefit of all noteholders,” said Toronto lawyer Purdy Crawford, chair of the investors committee.