Struggling Air Canada accepts investment from US Cerberus

0 Comments | AFP, June, 2004

MONTREAL (AFP) — Struggling Air Canada said it had accepted a 183 million US dollar investment offer from the New-York-based investment firm Cerberus as part of its massive plan to pull the airline out of banruptcy protection.

Under the deal, Cerberus will eventually control 9.2 percent of Air Canada stock.

"We are pleased at having reached a successful outcome to the equity process which has the solid support of our major financial partners and creditors," Robert Milton, president and chief executive of Air Canada, said in a statement.

"The Cerberus investment represents another concrete step towards our emergence from" court protection by September 30.

The airline, a member of the Star Alliance, lifeline to millions of Canadians and a key player on...