On May 21, 2008, the Québec Court of Appeal released its highly anticipated decision regarding BCE’s proposed plan of arrangement. In a unanimous decision by five judges, the Court of Appeal held that the board of directors of BCE (the BCE Board) overlooked the interests of holders of certain debentures (Debentures) issued by Bell Canada Inc. (Bell), a wholly-owned subsidiary of BCE, as it did not take into account the adverse financial impact of the BCE leveraged buyout (LBO) on the debentureholders (Debentureholders), and denied approval of the transaction.

type Material Change Report: Quebec Court of Appeal BCE Decision: The Largest Leveraged Buyout in Canadian History