Top court to rule Friday on ABCP appeal
The Supreme Court of Canada will announce Friday whether it will hear a challenge to a controversial rescue plan for about $32 billion of frozen asset-backed commercial paper (ABCP).
The court said the decision will be handed down after the 4 p.m. ET close of stock markets.
A group of companies led by Jean Coutu Group filed a brief Sept. 8 asking to court to hear their appeal, arguing the case was of national importance.
Supporters of the rescue plan told the court earlier that their opponents hadn't raised any issue that would warrant review by the Supreme Court.
One of the dissident group's biggest complaints is that the rescue plan would all but remove investors' ability to seek compensation from their financial advisers or others involved with the sale of the ABCP to them — except in cases of fraud.
It also would not compensate mid-sized investors for having to wait to get their money or sell the notes at a discount.
About $32 billion of ABCP issued by special non-bank trusts has been frozen for more than a year. Much of it is held by Canadian pension plans, but smaller amounts are held by companies and individuals.
The deal's opponents want the top court to hear their appeal of an Ontario Court of Appeal decision, which upheld a Superior Court ruling that removed a major roadblock for the rescue plan.
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