Air Canada Provides Update on Restructuring
MONTREAL, May 1 /CNW Telbec/ - Air Canada provides the following update
on the airline's restructuring under the Companies' Creditors Arrangement Act:
CIBC Agreement on Aerogold and Additional Financing Commitment
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Air Canada received on April 28 an unsolicited and non-binding expression
of interest for a credit card agreement with Aeroplan from a third party who
has requested that its identity not be disclosed. Following the Monitor's
review of the proposal, the Monitor issued a report today in which it
recommended that the motion to approve the CIBC credit card agreement and
related financing facility be adjourned until May 14, 2003 in order to provide
the Monitor with additional time to conduct a process in which additional
expressions of interest from alternative credit card providers could be
obtained.
Air Canada advised the Court and the Monitor that it wished to complete
the CIBC agreements in accordance with their terms upon receipt of the
requisite approval of the Court. In addition, Air Canada advised that it would
co-operate in the bid process recommended by the Monitor if such a process was
ordered by the Court.
Today, Justice J. Farley of the Superior Court of Justice of Ontario
granted the Monitor's request to adjourn the motion to approve the CIBC
agreements to May 14, 2003 and approved the bid process recommended by the
Monitor.
Closing of DIP Financing
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The company confirmed earlier today that the debtor-in-possession (DIP)
transaction relating to USD$700 million secured financing facility with
General Electric Capital Canada Inc. closed yesterday.
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