Wednesday, October 29, 2008

ABCP restructuring granted extension

(Financial Post) The Pan-Canadian Investor Committee overseeing the $32-billion asset-backed commercial paper restructuring has been given an extension until the end of November to get the deal done.

The committee was in court Wednesday asking Justice Colin Campbell for an extension to the current stay granted under the Companies Creditors Arrangement Act.

Goodmans LLP lawyer Fred Myers told the court that the investors' committee "expects the plan will be implemented in November" and they continue to "work closely with all counsel" to make that happen.

Mr. Myers acknowledged that retail investors are "anxious" and that everyone is "highly motivated to get the deal done."

Nobody opposed the motion. However, lawyer Arthur Jacques of Shibley Righton told the court that while he "doesn't want to impugn the process," his clients "can't wait forever."

"There is a tremendous amount of stress within our population of retail noteholders," he said.
Justice Campbell empathized with him, noting that the stress the retail noteholders feel has been extended to "most of the human beings in Canada today" through the current market turmoil.

Retail investor Brian Hunter, who was in court observing the hearings, said: "I got the indication this is not open-ended and won't drag on. I got a sense there's an urgency to get it done."

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