Air Canada yesterday said an overwhelming majority of its creditors approved a plan meant to complete the carrier's bankruptcy reorganization. The carrier remains on track to emerge by Sept. 30 from court protection.
"This positive response from creditors represents by far the most critical vote of confidence in the strength of our business plan and the airline's prospects going forward," said Air Canada president and CEO Robert Milton. "This crucial milestone of our restructuring is now behind us, and we look forward to the plan's approval by the court and the completion of our restructuring at the end of September."
The court overseeing the carrier's bankruptcy case on Aug. 23 will hold a hearing to review the restructuring plan. The court this summer approved an investment plan that enables New York investment firm Cerberus Capital Management to take a 9 percent stake in the company for C$250 million (US$191 million).
Air Canada in April 2003 filed for the Canadian version of bankruptcy protection
(BTNonline, April 1, 2003).