Supreme Court dismisses ABCP appeal

By Jody White | September 19, 2008 | Last updated on September 19, 2008
1 min read

The Supreme Court of Canada has dismissed a challenge to the restructuring plan for the country’s frozen asset-backed commercial paper (ABCP) market, clearing the way for the restructuring of the $32 billion market.

A collection of investors led by Jean Coutu Group had asked to court to hear their appeal, arguing the restructuring plan tabled by a committee led by Toronto lawyer Purdy Crawford was unfair to mid-sized investors and would eliminate their right to sue for compensation.

Roughly $32 billion of ABCP issued by special non-bank trusts has been frozen for more than a year. The recent market volatility in the U.S. had cast fresh doubt on the success of the restructuring plan, as credit tightens and banks struggle to raise cash.

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Scrap Paper: A guide to the ABCP mess.

Filed by Jody White, Benefits Canada,


Jody White