Talks aimed at restructuring $33 billion in short-term commercial debt missed a key deadline early Saturday.

The Pan-Canadian Investors Committee, formed to help fix the liquidity problem with asset-backed commercial paper (ABCP) said early Saturday it had extended a standstill agreement on market trading of the short-term debt from a Friday midnight deadline to the end of January.

“Substantial progress has been achieved in establishing a framework to restructure the ABCP issued by the 21 remaining trusts covered by the Montreal Accord,” the committee stated.

The goal of the restructuring process is to exchange the frozen short-term notes for new floating-rate bonds maturing over much longer terms. Then the short-term notes would begin trading, likely at significant discounts.

The latest delay until the end of January hasn’t affected the completion date that’s set for March 14, 2008, the committee said.

The Committee has been advised that “the Canadian banks are willing to consider measures where they can assist in the restructuring process.”

“I am gratified by the progress that all parties have made in addressing the key issues affecting our restructuring,” said Purdy Crawford, chairman of the Investors Committee, in a release.

Crawford added that, “We have come a long way towards a successful outcome. I encourage our ABCP investors to allow us a short time longer to finish the task. The Investors Committee remains committed to delivering a final implementation of our restructuring in the first quarter of 2008 and I have every confidence we will get there.”

Finance minister Jim Flaherty said he welcomes progress toward the market-led restructuring of ABCP

“The government has been monitoring this market-led process closely and recognizes the complexity of the restructuring. It is reasonable that such an undertaking would require more time,” Flahery said in a release issued on Satureday.

“An early, successful restructuring is the best way for investors to have access to funds while realizing the best value for their investments over time,” he said.