Restructuring of Skeena Capital Trust. Note holders to receive return of capital and interest

Note holders in Skeena Capital Trust will be receiving a return of their capital and, net of certain costs of the proposed restructuring, payment of accrued interest under the terms of an agreement in principle announced today for the restructuring of Skeena Capital Trust. The agreement was negotiated among Skeena’s Administrative Agent, Dundee Securities Corporation, its Co-Financial Arrangers, Edenbrook Hill Capital and Dundee Securities Corporation, the bank counterparties which provided assets to Skeena, as well as the Pan Canadian Investors Committee chaired by Purdy Crawford.

Under the proposed restructuring plan, all $2.1 billion of notes outstanding, covering “A” notes, “E” notes and term floating rate notes held by investors, will be redeemed at par plus a portion of the accrued interest; the amount of interest paid is proposed to be reduced by certain costs of the restructuring. Funding for this restructuring will be provided through the issuance of long term floating rate notes, issued by a new trust established for this purpose, to new investors which have been identified with the assistance of the bank counterparties and the Investors Committee.

The proposed restructuring, including the redemption of the notes, is subject to the execution of definitive documentation, due diligence and certain conditions including the final placement and rating of the notes and is expected to be completed by, or shortly after, the end of October 2007. Investors in Skeena’s asset backed notes will be sent further information regarding the terms of the proposed restructuring within the next several days, including the timing and manner of payment for their existing notes.