Power to the people

A plan to restructure C$32 billion of non-bank Canadian asset-backed commercial paper into long-term notes hinged on the backing of 1,800 retail investors. However, a solution that will see most individual buyers recoup their initial investment was enough to salvage the restructuring plan. Rob Davies reports

A vote on a proposal to convert C$32 billion ($31.7 billion) of asset-backed commercial paper (ABCP) issued by non-bank Canadian conduits into longer-dated term notes won the approval of investors on April 25. The critical vote, had been on a knife-edge as angry retail investors threatened to veto the restructuring plan - a result that would have forced the beleaguered conduits, frozen from the ABCP markets since August, to sell billions of dollars in structured credit assets at fire-sale prices