Pan-Canadian Investors Committee announces framework for restructuring of Third-Party ABCP

The Pan-Canadian Investors Committee for Third-Party Structured Asset Backed Commercial Paper today announced that substantial progress has been achieved in establishing a framework to restructure the ABCP issued by the 21 remaining trusts covered by the Montreal Accord.

The Investors Committee is working to settle certain issues and to finalize the term sheets as well as the syndication of a margin funding facility required to support certain of the restructured assets. The Investors Committee remains on target for closing on or before March 14, 2008 and, accordingly, has also agreed to a further extension of the standstill until January 31, 2008 to enable finalization of the terms of the restructuring plan.

The restructuring aims to replace the ABCP with notes having a maturity similar to the maturity of the underlying assets and will address the margin call requirements of certain of the trusts. Providing liquidity for noteholders requiring it and transparency for all noteholders continue to be priorities for the Investors Committee.

Proposed elements of the restructuring under consideration include:

• A comprehensive and contemporaneous restructuring with distinct solutions for (i) ABCP which is supported solely by traditional, unleveraged assets (approx. $3 billion), (ii) ABCP which is supported by leveraged assets, unleveraged synthetic assets or a combination of leveraged and unleveraged assets (approx. $27 billion) and (iii) ABCP which is supported primarily by U.S. subprime assets (approx. $3 billion).
• The replacement of mark-to-market triggers by more remote spread loss triggers.
• A margin call credit facility to further enhance the credit quality of the new notes.
• An investment grade rating of the restructured notes.

The Committee has been advised that the Canadian banks are willing to consider measures where they can assist in the restructuring process.

“I am gratified by the progress that all parties have made in addressing the key issues affecting our restructuring,” said Purdy Crawford, Chairman of the Investors Committee. Mr. Crawford added that “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. The Investors Committee remains committed to delivering a final implementation of our restructuring in the first quarter of 2008 and I have every confidence we will get there.”

As of September 14, 2007, these 21 trusts had approximately $33 billion (principal amount) of outstanding ABCP. Skeena Capital Trust, the only other trust covered by the Montreal Accord, is in the process of finalizing its restructuring, which is expected to be completed by December 19, 2007.

The Investors Committee will make a further announcement concerning the details of the restructuring following agreement on definitive term sheets with all key stakeholders. An information package (including a comprehensive information circular) with all necessary disclosure regarding the restructuring and its impact on the holders of the ABCP of each trust will also be mailed to all holders of ABCP following such agreement.