Air Canada Provides Update on Restructuring
MONTREAL, April 25 /CNW Telbec/ - Air Canada announced that Justice
Farley of the Superior Court of Justice of Ontario today amended his initial
order dated April 1, 2003, as follows, thereby furthering the airline's
restructuring under the Companies' Creditors Arrangement Act.
DIP Financing
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Justice Farley confirmed a Debtor-In-Possession (DIP) financing facility
of USD $700 million with General Electric Capital Canada Inc. Closing and
funding under this facility is subject to completion of the definitive loan
and security documentation expected to take place April 30, 2003.
A motion requesting approval of an agreement between Air Canada and CIBC
on a new Aerogold Agreement and on an additional financing commitment for CAD
$350 million is scheduled to be heard on April 29, 2003.
Extension of the Stay Order
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Justice Farley also approved an extension of the original stay period
order granted to Air Canada on April 1, 2003 to June 30, 2003. The purpose of
the extension is to provide Air Canada sufficient time to develop a revised
Business Plan, to continue negotiations with creditors and labour unions and
to renegotiate aircraft leases, all of which must be completed before
developing a final Plan of Arrangement. The target date for the Plan of
Arrangement is July 31, 2003.
Postponement of Air Canada Annual General Meeting
-------------------------------------------------
Justice Farley approved Air Canada's request to extend the time to call
the airline's Annual General Meeting pending further order of the court.
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