Friday, July 4, 2008

ABCP group expected to move quickly

Investors stuck with frozen asset-backed commercial paper could begin to see their holdings thawed not long after an appeal court ruling that's expected in a matter of days.

The committee overseeing the $32-billion restructuring of the frozen paper is planning to move quickly to close the deal should the Ontario Court of Appeal dismiss a challenge to the fairness of the proposal, rather than wait for any further appeals to run their course, said two people familiar with the strategy.

Lawyers expect the appeal court will decide on the challenge by a group of corporations by the middle of next week.

The committee doesn't want to wait on a possible appeal to the Supreme Court of Canada by the challengers, the people said. That would force the challengers, who include companies ranging from small miner Redcorp Ventures Ltd. to airport manager AĆ©roports de Montreal Inc., to try to stop the closing of the deal with an injunction.

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