Canada’s C$32 Billion Debt Swap to Miss Deadline

A C$32 billion ($26 billion) plan to swap frozen commercial paper in Canada for longer-term notes won’t be done by the end of November, missing a deadline set by an investors’ committee overseeing the restructuring, Bloomberg reported yesterday. The group is required to post agreements related to the swap on the Internet no later than seven days before the closing, according to a June court order. No documents have been posted on the Web site of Ernst & Young Inc., the accounting firm appointed to monitor the process. The delay means investors including Magna International Inc., Canadian Pacific Railway Ltd. and more than 1,750 individuals will have to wait even longer to access cash or get new securities to replace commercial paper that’s been frozen since August 2007. The committee overseeing the restructuring said on Oct. 20 that the plan would be delayed until the end of November. Insolvency protection for a group of trusts holding the debt expires Nov. 28 and the committee has a hearing scheduled that day in Ontario Superior Court on a request for an extension. Read more.