Banks and investors close to agreeing revised Montreal plan, reports Globe & Mail

The Globe & Mail reports that banks and investors are working on a revised restructuring plan for Canadian conduit-issued commercial paper, as the original plan faces collapse. The article says that investors and foreign and Canadian banks met yesterday to come up with a final proposal.
According to the article, the underlying idea is still the same: to swap the frozen paper for new notes that investors can sell or hold to maturity. But the revamped restructuring plan includes concessions such as agreements from foreign banks such as Deutsche Bank to take more risk, reducing the need for government funding.
The article does not say exactly how foreign banks would shoulder more risk, but this is likely to reflect changes to the triggers in the leveraged super senior CDOs which are owned by the conduits and issued by the foreign banks. Recent spread widening in investment grade credit is likely to have brought these leveraged super seniors closer to their trigger points.