Canadian commercial group misses deadline
However get extension on deadline
A blue-chip investor group trying to fix Canada's frozen C$33 billion market ($32.4 billion) for third-party asset-backed commercial paper missed its deadline for a deal, but extended a standstill pact on the complex workout plan to January 31. “'ubstantial progress had been made in establishing a framework to restructure the ABCP issued by the 21 remaining trusts covered by an August 16 standstill agreement known as the Montreal Accord,' the Pan-Canadian Investors Committee for Third-Party Structured Asset Backed Commercial Paper said in a statement.
The group, formed by Quebec's public pension fund manager Caisse de depot et placement and led by veteran corporate lawyer and business executive Purdy Crawford, remains on target to close the restructuring plan by March 14, it said. '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,' Crawford was quoted saying in a news wire service report. Asset-backed commercial paper is a segment of the short-term debt market. The notes are secured by a pool of assets such as accounts receivable, auto loans, mortgages and credit-card receivables.
