Investors Scrutinizing the Regulators

Home Page


Securities Regulation In CanadA

Fox Guarding the Hen House




Attention Business Editors:

Juroviesky and Ricci announces an initiative to enhance Retail ABCP Noteholder Value

    TORONTO, April 3 /CNW/ - Juroviesky and Ricci announced today that after
it failed in its initial attempts to persuade the Pan Canadian committee to
buy its clients frozen paper using moral persuasion, they would be looking to
non-traditional methods, such as auctioning the Retail Holders' voting and
economic rights to the highest bidder, to maximize value to its retail clients
that purchased ABCP.
    Juroviesky said that he was soliciting bids from US based Private Equity
and Hedge Funds, known for buying distressed debt, "to keep the process
    "The impression we gleaned from the Pan-Canadian committee was that they
felt that they had no moral duties to the class of Retail Investors, and that
a deal that even if forthcoming would most likely only benefit the persons
needed to secure a successful vote on the restructuring." Juroviesky said.
    "Accordingly we felt that in order to maximize value for all our clients,
we needed to look at creative ways to enhance the value of their notes.", "We
feel that an auction of all my clients' economic interests would add
significant value to those looking for an alternative to the proposed
    "Juroviesky and Ricci LLP has retained Blackmore Partners, a well known
consulting firm, with established contacts in the private equity and hedge
fund markets, to seek a sale of our clients' economic interests in their ABCP
at the highest value.", said Juroviesky today.
    Blackmore Partners is a cross border consulting firm representing buyers
and sellers in the capital markets with offices in Chicago and Toronto.
    "Blackmore will be qualifying buyers and handling the sales process",
said Juroviesky, "we already have preliminary expressions of interests to
purchase our clients' interests, and we are expecting these offers to increase
as this process gathers steam.", "We invite all Private Equity funds and Hedge
Funds to call our advisors and discuss the terms to submit a bid."
    "We feel that there is an opportunity for a well funded institutional
fund, with a longer liquidity time frame, to extract more value from the
Pan-Canadian Investor committee, than what we have been offered to date, and
to accordingly offer my clients an appropriate deal, including a percentage of
any upside", said Juroviesky.
    "The PC committee stands to lose approximately 22 Billion dollars if the
restructuring fails", said Juroviesky, "so there is some leverage there for a
party whose threats to vote it down are believable."
    Under the structure proposed by Blackmore Partners, all Noteholders would
authorize Juroviesky and Ricci LLP to vote their proxies for them in a voting
trust, and a winning bidder would have the right to direct the voting trust to
either vote for or against the Pan Canadian sponsored CCAA proposal.

    To sign up to the Juroviesky and Ricci ABCP database please go to
For further information: about submitting a bid or participating in the
auction process please contact ; For More
information about the contents of this press release, please email , or Brian Hunter at

Click for more on ABCP