Brookfield Asset Management Inc (BAM)

[Investorman]

Brookfield Establishes C$1 Billion Fund to Provide Debtor-in-Possession Financing With the Backing of EDC, CIBC and Sun Life
August 19, 2009 10:00 AM ET

Brookfield Asset Management ("Brookfield") (TSX: BAM.A)(NYSE: BAM)(EURONEXT: BAMA) and Export Development Canada ("EDC") today announced that Brookfield has established a C$1 billion fund (the "Fund") with the backing of EDC to provide debtor-in-possession ("DIP") loans and other specialty finance solutions to Canadian companies undergoing a restructuring or reorganization.

Brookfield has committed to provide 10 per cent of the Fund's capital and will manage the Fund, identifying and evaluating investment opportunities. EDC played a lead role in structuring the Fund, and is the largest investor with an initial participation of C$450 million that could grow to C$1 billion.

"Brookfield's history of specialty bridge lending and expertise in corporate restructuring positions us well to provide tailored solutions to support companies through the restructuring process. We believe that providing financing for companies undertaking a restructuring will help viable enterprises emerge from the current recession in a strong competitive position," said Joe Freedman, the Senior Managing Partner responsible for the Fund at Brookfield.

DIP financing provides companies seeking protection from creditors with capital to continue to operate their business while they complete a plan of reorganization. The Fund will target mid-market and larger scale opportunities where at least C$20 million of financing is required.

"This Fund will help Canadian companies gain access to credit during restructuring, when it's most needed," said Eric Siegel, President and CEO of EDC. "This new partnership with Brookfield enables us to further assist even more Canadian companies during the current downturn."

Fund investors also include Canadian Imperial Bank of Commerce ("CIBC") and Sun Life Financial Inc.

"CIBC is pleased to be a part of this initiative which will help support Canadian companies in these uncertain economic times," said Laura Dottori-Attanasio, Global Head of Corporate Credit Products at CIBC.