=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/03/29/f= inancial1238EST0107.DTL --------------------------------------------------------------------- Monday, March 29, 2004 (AP) Court extends Air Canada protection from creditors to April 15 (03-29) 09:38 PST TORONTO (AP) -- A Canadian bankruptcy court judge has extended Air Canada's protection from creditors until April 15. The insolvent airline had said last week it would seek an extension to April 30, but on Monday Air Canada requested only that Ontario Superior Court Justice James Farley continue its protection until the middle of the month. Monday's hearing followed a meeting between Air Canada CEO Robert Milton and Hong Kong businessman Victor Li, seeking to resolve an impasse with unions on proposed changes to the airline's pension plans. Li's Trinity Time Investments has threatened to walk away with its plann= ed $488 million investment in the airline if the pension changes are not accepted. A lawyer for Trinity Time said Monday that the firm will have completed its review of Air Canada's business plan and updated its proposal by April 15. Air Canada's agreement with Li carried an April 30 deadline to exit creditor protection, as does a separate agreement with GE Capital Aviation Services, which is to provide $1.5 billion in financing and restructure leases on 108 aircraft. The unions argue that they will make no further concessions after surrendering cost cuts worth more than $750 million a year during negotiations last year, in return for pension guarantees. Trinity Time wants to minimize Air Canada's potential future obligations by offering a choice of defined-benefit or defined-contribution pension plans to current employees, while new workers would get a defined-contribution plan. Compounding Air Canada's problems is a request by the federal pension regulator that the airline revise its payment schedule to repay a $900 million deficit of the company's pension plan. Air Canada, operating under court protection from creditors since last April 1, initially hoped to complete its restructuring by the end of 2003. ---------------------------------------------------------------------- Copyright 2004 AP