Small investors who invested in asset-backed commercial paper (ABCP) with Vancouver-based Credential Securities Inc. might now get their money back.

The firm announced it has put the finishing touches on a relief program to buy back, at par value, the restructured third-party ABCP from its clients who qualify for the relief program.

The plan comes on the heels of a similar announcement from Cannacord Capital Corp., also of Vancouver and another of the firms with a significant number of clients invested in the now-frozen ABCP.

Credential said in a news release that Canaccord facilitated the transaction.

According to the company, the Credential Securities Relief Program combines a third-party market bid with a top-up that it will fund along with some credit union partners. The program achieves par value, plus clients with $1 million or less invested in the paper will get any unpaid interest.

As well, Credential said it will reimburse the eligible clients’ pro rata share of the restructuring costs.

“We realize that this has been a difficult period for our clients,” said Bob Hague, interim-CEO of Credential Financial.

As with the Canaccord relief plan, this program is contingent on the successful restructuring of the ABCP market in Canada, as proposed by the Pan-Canadian Investor Committee. The committee, led by Toronto lawyer Purdy Crawford, has been working since August to sort out the mess of frozen paper.

Last week, the committee applauded the program put together by Canaccord and Crawford predicted Credential would do the same.

“Not only Credential, but all of the credit unions that they sold the paper for or through, have a question of reputation here,” said Crawford in a conference call with ABCP investors on Monday. “That’s why I think they are working hard to come up with a solution.”

Credential Securities Inc. is the full-service investment dealer for the Canadian credit union system.

It is estimated that about 335 people have invested approximately $48 million in ABCP with Credential.

The way the plan works is eligible clients who decide to participate will “execute assignments of all of their restructured notes” which will “effectively sell or transfer ownership of these notes to Credential Securities in return for their par value.” The transfer of ownership will only be completed when clients receive their purchase proceeds, the company added.

According to Credential, the funds needed for the purchase of notes will be committed to escrow and clients will get their money no later than 20 business days after the exchange of their ABCP investments for restructured notes.

Credential said an information package will be sent out very soon and that client’s must accept the offer before the restructuring plan implementation date, which is currently scheduled for May 23.

“Our focus now shifts to ensuring our clients understand the specifics of the proposal and how it benefits them,” said Hague.

The noteholder vote on the Crawford committee restructuring plan is scheduled for April 25.