Business and Finance

Credential Securities Inc., the investment dealer for Canadian credit unions, is expected to announce a relief plan this week for more than 300 retail investors with savings entangled in the commercial paper crisis.

A restructuring committee, led by Bay Street lawyer Purdy Crawford, gave that assurance during a conference call today as it fielded questions from investors about its plan to rehabilitate the $32 billion market for non-bank asset-backed commercial paper in this country.

About 335 Credential investors hold about $48 million worth of frozen ABCP notes that are subject to a restructuring proposal known as the Montreal Accord. News of a possible bailout follows an announcement by Canaccord Capital Inc. last week that it intends to buy back notes from about 1,430 of its clients.

"Credential is working on a similar proposal and we’re reasonably optimistic that it will be announced in the next few days," Crawford told investors on today’s call payday loans. "As I have said numerous times, I have spoken with many retail note holders and we are sensitive to their concerns."

Credential Securities did not immediately return a message seeking comment. Crawford, however, said that Credential investors should expect to get their principal plus some "accrued interest" in late May. "It will be cash," Crawford said.

Canaccord Capital, whose retail investors make up the bulk an estimated 1,800 individual note holders, said last week it plans to repurchase up to $138 million of ABCP.

Nevertheless, Canaccord’s relief plan remains subject to a successful restructuring of the larger non-bank ABCP market. Investors of all sizes are scheduled to vote on the Crawford committee’s restructuring plan on April 25.

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