The most complicated restructuring in Canadian history is all but finished after an Ontario judge approved a plan to unfreeze the asset-backed commercial paper market.
|New investors refused to buy ABCP on concern that it was backed by subprime mortgages. That left existing investors with no way to sell their ABCP, which had been pitched as a safe short-term investment that was the next best thing to cash. Big banks that were supposed to take up the slack by purchasing paper declined.|
By next week, investors will begin to get access to the $32-billion of their money that's been frozen since the market for the short-term debt seized up in August, 2007. A committee of large investors led by lawyer Purdy Crawford has been seeking a solution ever since.
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