24 Apr 2008 14:12 ET
(Adds details of ruling) TORONTO, April 24 (Reuters) - A Canadian judge said on Thursday that he would not alter or delay a restructuring plan for the C$32 billion ($31.7 billion) domestic market for nonbank asset-backed commercial paper. The ruling by Ontario Superior Court Justice Colin Campbell means that a noteholder vote on the plan will go ahead on Friday, as scheduled. In his decision, which he called "a brief endorsement," Campbell said the vote should go ahead. Campbell said he thought a reclassification of noteholders at this stage would require a postponement of the vote, which he called "an unacceptable approach". During the two-day hearing in Toronto this week, corporations including Barrick Gold , Transat AT , Ivanhoe Mines , Jean Coutu Group , Redcorp Ventures and WebTech Wireless , urged Campbell to amend the restructuring plan or to delay the vote. Lawyers for the committee of large ABCP noteholders that developed the intricate restructuring plan opposed any changes, arguing that the plan had to succeed or collapse in its current form. The commercial paper in question was issued by nearly two dozen nonbank trusts, but the market for this type of ABCP fell apart last August when concerns mounted over deterioration in the U.S. subprime mortgage sector. |