Air Canada creditors vote for restructuring plan

0 Comments | AFP, August, 2004

MONTREAL (AFP) — Creditors overwhelmingly backed Air Canada's restructuring plan, clearing the way for the insolvent airline to soar out of bankruptcy protection next month, the airline said.

Ninety-nine percent of creditors meeting in a hotel in the Canadian national flag carrier's home city of Montreal backed the plan, Air Canada said in a statement.

Air Canada, a major player on Asian and trans-Atlantic routes and leading light of the Star Alliance, went bust in April 2003 -- and has spent months staving off extinction.

But now the restrucuting plan, which involved huge economies and job cuts, is approved, the firm will be able to move out of bankruptcy protection at the end of September.

Creditors will take a 45.8 percent chunk of the new Air...