The Supreme Court of Canada has dismissed a challenge to the restructuring plan for the country’s frozen asset-backed commercial paper (ABCP) market, clearing the way for the restructuring of the $32 billion market.

A collection of investors led by Jean Coutu Group had asked to court to hear their appeal, arguing the restructuring plan tabled by a committee led by Toronto lawyer Purdy Crawford was unfair to mid-sized investors and would eliminate their right to sue for compensation. Roughly $32 billion of ABCP issued by special non-bank trusts has been frozen for more than a year.

The recent market volatility in the U.S. had cast fresh doubt on the success of the restructuring plan, as credit tightens and banks struggle to raise cash.

For more about the ongoing ABCP story, click here to read our special online report, The Paper Chase.

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