Two Canada trusts suspend payouts on CP problems

TORONTO, Aug 15 (Reuters) - Two Canadian income trusts are suspending distributions, in the latest fallout from Canada's problem market for asset-backed commercial paper, or ABCP.

Global Diversified Investment Grade Income Trust (DG_u.TO: Quote, Profile, Research, Stock Buzz), or Global Digit, and Global Diversified Investment Grade Income Trust II (GII_u.TO: Quote, Profile, Research, Stock Buzz), or Global Digit II, said late on Tuesday they were suspending their distributions after MMAI-I Trust and Silverstone Trust said payments would be withheld.

MMAI-I and Silverstone were two of 17 ABCP issuers in a list from rating agency DBRS of issuers that had asked for extra liquidity. The two said on Tuesday they were unable to roll over maturing paper and had not received liquidity they were asking for.

Global Digit said it would be unable to pay the distribution of 49.5 Canadian cents per unit, declared on July 18, and normally payable on Aug. 15.

Global Digit II said Silverstone was withholding payments and the trust would not be able to pay the distribution of 68.7 Canadian cents per unit declared on July 18, 2007 and normally payable on August 15, 2007.

($1=$1.08 Canadian)