The Autorité des marchés financiers reports that the Bureau de décision et de révision en valeurs mobilières issued a court order that cease trades companies associated with Mount Real Corp.

The AMF says that the order prohibits securities transactions by the Mount Real Corporation, Gestion MRACS ltée, Real Vest Investments Ltd. and Real Assurance Acceptance Corporation, “particularly previously issued promissory notes, including exchange, conversion and disposal of said securities.”

The regulator notes that the decision follows the dissemination of a reorganization plan by trustee Allard et associés inc. to each noteholder in order to allow Mount Real Corporation, Real Vest, MRACS and RAAC to resume trading.

The court’s intervention was requested by the AMF, which says it believes that the reorganization plan incites noteholders to carry out extremely complex transactions based on “misrepresentations, counter to the law and the basic rules of securities investments established to protect the public.”

The AMF adds that it also believes that, “in its current form, the reorganization plan contradicts the BDRVM order dated November 9, 2005, which forbade the targeted parties from divesting themselves of funds, securities and other assets in their possession.”

“Lastly, the AMF believes the reorganization plan to be neither viable nor realistic, and to compromise the application of the provisional administrator’s recommendations,” it says. “In its decision, the BDRVM acknowledged the facts put forth by the AMF as sufficiently troubling to justify court intervention.”