Marlboro,

I believe you are correct! I found this information in the Annual Information Form of 2007 (released Spring 2008). I didn't realize the investment had actually been a part of PDP; I thought it was a seperate issue. I never did research PDP so didn't know anything about how they got into the losing investment, and didn't keep track of if it were ever recompensed.

"On August 20, 2007, Petrolifera advised the Corporation and other shareholders and market participants of its exposure to short-term asset backed commercial paper ("ABCP") investments in Canada. During August 2007 these investments became due and payable and were not repaid. As at July 31, 2007, Petrolifera had approximately $37.7 million of its total cash and cash equivalents invested in notes issued by two separate trusts in the ABCP markets. Subsequently Petrolifera reclassified its ABCP investments to long term and recorded a non-cash impairment which reduced the carrying value of its ABCP investment and also resulted in lower earnings in 2007.

As the Corporation uses the equity method to account for its investment in Petrolifera, this amount was lowered by the extent of the Corporation's equity interest in the after tax impairment. There is no assurance as to the outcome of the restructuring process and the actual timing and amount ultimately recoverable from Petrolifera's investment in ABCP may differ materially from Petrolifera's estimate of such value at December 31, 2007 which would impact Petrolifera's earnings in future periods. To the extent that Petrolifera is unsuccessful in its efforts to recover its investment in full, Petrolifera may suffer a loss and the Corporation will be required to account for its proportion of such loss in accordance with its accounting policies."