ABCP deal in canada

[Skydaemon]

abcp restructuring in canada nears completion

This is canada's main contested abcp restructuring right here. They've been fighting about it for something like 8 months now, and had completely frozen the assets all that time.

They just voted in favor, the judge delivers ruling on may 2, but a couple of corporations like barrick gold might appeal.

The long and the short of it is the individual investors with less than a million bucks get all their money back and the banks/brokerages or whatever swallow the cost in order to get the deal done.

The corporations with more than a million of abcp get kinda screwed though, they get the (restructured?) assets and can either hold them for 9 years or sell them on the market whenever they can.

Beyond this, there are a couple of sizable SIV's which hold abcp, but those so far are relatively contained (I believe mainly held by cibc and bmo banks)and seem to be holding together with the support they've gotten so far.

This restructuring in this lawsuit here is the only one I know of involving the general public (banks/brokers/credit unions basically pitched abcp as something along the lines of a redeemable term deposit, then wham they froze redemptions of them and locked in all the money, people were not happy).

Anyway, this is a pretty significant step for canada's issues regarding this. Though it was never all that big, something like $33-40 billion. The SIV's and what's hiding on corporate balance sheets might leave some surprises, but the public should be done with it mostly now.