Tense countdown as bankrupt Air Canada faces new deadline

0 Comments | AFP, May, 2004

MONTREAL (AFP) — The clock is running down again for Air Canada, the bankrupt national carrier which must by Saturday satisfy conditions set by Deutsche Bank, its latest, and possibly final potential savior.

The airline, shielded from creditors for over a year, must again cut costs and agree with the government on restructuring pension funds before the German bank will commit 850 million dollars (612 million US dollars) in new financing.

Deutsche Bank is only in the frame as Air Canada's white knight, after the collapse of a previous deal to bring the carrier back from the brink, spearheaded by Hong Kong billionaire tycoon Victor Li.

But Li walked away from the deal last month, chastising the airline for failing to overhaul loss making operations, and...