Air Transport World

Air Canada.(North America report)

Air Canada was expected to name an equity investor for its financial reorganization from a shortlist of just two companies, Cerberus Capital Management and a firm controlled by Victor TK Li, before the end of Oct. The airline has said it wants C$700 million ($516.8 million) in funding to assist its emergence from court protection under the Companies' Creditors Arrangement Act, roughly the equivalent of US Chapter 11 bankruptcy. AC said both bidders' proposals also include a rights offering that could push total proceeds to C$1 billion.

Under the proposals, according to the airline, rights will be offered to all creditors of AC and its subsidiaries that are under bankruptcy protection to acquire new shares on the same economic terms as the bidder. …

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