Canada commercial paper resolution close-report
TORONTO, March 13 (Reuters) - The restructuring of a troubled sector of Canada's asset-backed commercial paper market is close to a resolution, marking what could be the first successful workout of such distressed paper anywhere, the National Post newspaper reported on Thursday.
Last month the group charged with restructuring the sector said it would provide full details of its restructuring plan by March 14, a little later than earlier expected.
The newspaper, in its Financial Post section, said the group will file papers this week in an Ontario court in hopes of winning approval to implement a basic framework agreed to by the parties involved in late December.
"We're close to the finish line," the newspaper quoted a source close to the restructuring as saying.
The restructuring aims to unfreeze about C$33 billion of nonbank asset backed commercial paper.
The sector froze up last August as investors worried about exposure to U.S. subprime mortgages, prompting a complex rescue effort led by veteran corporate lawyer Purdy Crawford.
ABCP holders include Canadian pension funds, financial institutions and government agencies, but also small mining and technology companies. Many of them have already written down their investments to some extent. (Reporting by Ka Yan Ng; Editing by Peter Galloway)
