The comments came a day after the federal government, Quebec and Ontario agreed to an eleventh hour request from a committee spearheading the restructuring to put up nearly $10-billion to meet potential margin calls on the assets underlying the frozen notes. 
"Justice Colin Campbell said it wouldn’t be appropriate for him to make such an order. He tried to calm the waters, noting that he didn’t interpret Mr. Howard’s comments to be a threat." – but see below [this added about 5:15PM Pacific Time Friday]
Canada’s "Big P" ABCP bailout is about 3 times bigger than the "Big 3" bailout. Why are we doing this without a public debate?
There’s no nice way to say this. Yesterday a few of the big boys put a gun to Jim Flaherty’s head.
Dec. 18 (Bloomberg) — Deutsche Bank AG, Citigroup Inc. and other banks backing a plan to convert C$32 billion ($27 billion) of insolvent Canadian commercial paper said they will walk away from the deal unless it’s completed tomorrow.
The non-Canadian banks, which include Bank of America Corp. and HSBC Holdings Plc, agreed last year not to demand collateral tied to the paper while holders worked out a restructuring. Peter Howard, who represents the banks, told an Ontario judge today that his clients won’t extend the accord past tomorrow.
Now the Canadian government has announced  that they, Alberta, Ontario and Quebec will be putting in enough money to make the ABCP restructuring a done deal by Monday. We’re talking about a close to C$10 billion bailout getting dragged out of the Tories, although the size of Ottawa’s share will probably not be made public for a long time.
There are lots of stories coming out on different aspects of this dramatic plot-twist, and I’ll try to get back to them soon. It is likely to have a strong influence on the struggle between Harper and The Coalition which is scheduled to resume in the New Year. As well, since the freeze of ABCP assets marks the starting point for the world credit crisis, a successful resolution of the problem would serve as a precedent for later parts of the crunch. Contrariwise, if this falls apart over the weekend, it will be a strong indication that the world financial services industry is in even worse shape than we thought.
: "Deutsche Bank, Citigroup Threaten Canada Debt Plan", by Joe Schneider, Bloomberg, December 18, 2008.
: "Ottawa, provinces agree to back ABCP deal", CP / CBC, December 19, 2008.
: "Retail noteholders cautiously optimistic on ABCP rescue plan", by John Greenwood, National Post, December 19, 2008.
: "Midnight deadline for $32B ABCP pact: Court told clients ‘ready and willing to close the existing deal’ ", by Jim Middlemiss, National Post, December 19, 2008. [gee, guys, the below sure sounds like a threat]
A lawyer for the foreign banks involved in the restructuring of the frozen $32-billion asset-backed commercial paper told an Ontario Supreme Court judge yesterday the "unthinkable" could happen if there’s no agreement by the end of today.
Peter Howard, who acts for a group of foreign banks, including Deutsche Bank AG, HSBC Holdings PLC and CitiGroup Inc., stressed that "time is exceptionally short" to complete the restructuring.
Mr. Howard said his clients are "ready and willing to close the existing deal," but warned that an agreement among his clients to not terminate their trades ends this midnight.