Winnipeg Free Press - PRINT EDITION

$1-B lifeline created for troubled firms

OTTAWA -- Canadian companies facing bankruptcy are being given access to a new $1 billion lifeline from Ottawa and major financial firms to provide breathing space to restructure operations and return to solvency, Export Development Canada said Wednesday.

The EDC said it has agreed to become the top contributor to a new fund that would act as the bank of last resort to struggling companies that are unable to obtain credit through normal channels.

The Crown corporation has put up $450 million and Toronto-based Brookfield Asset Management (TSX:BAM.A), the former Brascan conglomerate, another $100 million to the fund.

Other investors include the Canadian Imperial Bank of Commerce (TSX:CM) and Sun Life Financial Inc. (TSX:SLF), one of Canada's largest insurers.

Brookfield will manage the fund and provide so-called debtor-in-possession loans and other specialty financing to insolvent Canadian companies who need money to pay the day-to-day bills while they restructure or reorganize.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 20, 2009 B8

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010; View the changes. New to commenting? Check out our Frequently Asked Questions.

Follow

  1. WFP Hockey

    Download our new hockey app for the iPhone for Winnipeg Jets updates

  2. Editor's Bulletin

    Sign up for daily bulletins from editor Margo Goodhand

  3. Winnipeg Jets

    All things NHL on our Jets landing page

  4. Twitter

    Follow our reporters and our news feeds on Twitter

  5. News Cafe

    Check out the menu, read our blog posts or get info on coming events

  6. Facebook Fanpage

    Follow our Facebook Fanpage for story links, contests and special events

letters

Make text: Larger | Smaller

Poll

Should infants be allowed in the House of Commons?

View Results

View Related Story