Bloomberg-
Investors holding about C$33 billion ($33.3 billion) of short-term debt in Canada agreed to swap it for longer-term notes, ending a four-month freeze in trading of the securities.
Today's agreement, which covers 20 of the 22 non-bank trusts, has been approved ``in principle'' by the investor group as well as the trust sponsors. Some lenders, including ``several of the large Canadian banks,'' have said they may provide credit facilities, according to the statement.The group didn't say how much investors will receive on the dollar, according to spokesman Mark Boutet.
The commercial paper will be restructured differently depending on the type of asset that backs it, the statement said.
The Caisse, Canada's biggest pension-fund manager, is the largest holder of non-bank issued commercial paper, with about C$13.2 billion. Other large holders include National Bank of Canada, the country's sixth-biggest bank, ATB Financial, an Alberta bank, and Transat A.T. Inc., a charter carrier.
The Caisse said in a separate statement today it's ``very satisfied'' with the agreement.
Well, it seems a little to late for Canada's largest sponsor of asset backed commercial paper, Coventree Capital Group. They reported the infamous statement: "Advisors are now exploring several restructuring options, which could involve, among other things, a sale, merger or other transaction involving the company or parts of the company, or potentially the orderly windup of the company's operations."
Coventree shares, close to zero, may warrant a few looks from the vultures.
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