Canadian Airlines Corp announces new company restructuring plan - Brief Article

Airline Industry Information, Feb 3, 2000

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

A new debt restructuring plan announced by Canadian Airlines Corp will see the company suspend payments for about CAD135m of debts owed to aircraft lessors and lenders.

Under the new plan Canadian Airlines Corp intends to seek concessions from its creditors and has indicated that the debts owed will be repaid when negotiations have occurred, with the repayment schedule expected to commence in late April following the plan`s approval.

Canadian Airlines Corp was acquired by Air Canada in December 1999 and the deferral of payments, as well as funding from Air Canada, is intended to provide Canadian Airlines with enough liquidity to meet its requirement during the restructuring process according to Reuters.

The plan is not expected to affect the company`s operations.

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