Canadian Airlines Plus - Reorganization Approved, CP out of bankruptcy
Jun 27, 00, 12:35 pm
Newsworld has just reported that a Calgary court has approved the reorganization of Canadian Airlines, and the company will be emerging from bankruptcy protection shortly. The report went on to say it is expected that the merger with Air Canada will be completed within 5-months.
Complete details are now posted on the Cdn website under "Corporate", then go to "All Press Releases". I cannot copy the release, but here is the page link: http://micro.newswire.ca/releases/June2000/27/c9138.html/87005-0
[This message has been edited by Shareholder (edited 06-27-2000).]
[This message has been edited by Shareholder (edited 06-27-2000).]
Jun 27, 00, 12:50 pm
Well I'll be...you just beat me Shareholder in announcing this news. There is still the appeal process that can be initiated by the creditors but I think we're safely over the last legal hurdle. Paul Brotto, as you stated, expects a full integration to be completed within 4 - 5 months. This full integration will ease so many of the problems that you and other loyal customers have been patiently dealing with while we've scrambled to get our s**t together yet keeping separate operations at the same time.
Thank you one and all. http://www.flyertalk.com/forum/smile.gif
The last hurdle will be merging the bargaining units, but the rehetoric that was previously inflaming that seems to have died down somewhat.
Perhaps, finally, there is some light at the end of the tunnel. (Other than an oncoming baggage cart http://www.flyertalk.com/forum/wink.gif )
Jun 27, 00, 3:38 pm
The last hurdle yes will be the seniority issue which is why I worded my post as the last [legal] hurdle as overcome.
Your instincts are in line with mine. The seniority situation is not the volitile subject it was a few months ago and employees from both sides (speaking for the majority) have confessed that they will live with whatever the CIRB decides.
The light at the end of the tunnel is indeed shining brighter these days. But who will be charged for the fresh batteries to perpetuate it? http://www.flyertalk.com/forum/smile.gif (pun intended with forethought but no malice).
I agree with A Flygirl, lets get on with doing what we do best....
Jul 5, 00, 4:16 pm
It's done, fini, complete!
Baby, I'm yours... http://www.flyertalk.com/forum/wink.gif
Jul 5, 00, 4:18 pm
Just got the copany email to confirm the press release:
CANADIAN AIRLINES COMPLETES FINANCIAL RESTRUCTURING
CALGARY - Canadian Airlines Corporation (the "Corporation") and
Canadian Airlines International Ltd. ("Canadian Airlines") announced
today that they have implemented the Plan of Compromise and
Arrangement (the "Plan") for the two corporations under the
Companies' Creditors Arrangement Act. The Plan was approved by order
(the "Order") of the Court of Queen's Bench of Alberta (the "Court")
on June 27, 2000.
The purpose of the Plan was to provide a fair recovery to certain
affected creditors of the Corporation and Canadian Airlines and to
provide Canadian Airlines with the financial stability necessary to
continue its business operations in conjunction with Air Canada.
The implementation of the Plan results in the compromise of the
indebtedness owed to the secured noteholders of the Corporation and
to certain affected unsecured creditors of the Corporation and
Holders of the U.S.$175,000,000 senior secured notes issued by the
Corporation have received, in full satisfaction, settlement and
release of such notes, U.S.$171,447,500, all accrued and unpaid
interest on the notes and all of the costs of the trustee and
collateral agent for the notes.
Affected unsecured creditors have received or will receive a payment
equal to 14% of the value of their proven unsecured claims in full
satisfaction, settlement and release of such unsecured claims.
CANADIAN AIRLINES REORGANIZATION
In connection with the Plan the share capital of Canadian Airlines
has been reorganized by the conversion of all common shares of
Canadian Airlines held by the Corporation into one retractable share
of Canadian Airlines which has been redeemed for the total sum of
$1.00 and the conversion of all preferred shares of Canadian
Airlines held by 853350 Alberta Ltd. ("AlbertaCo") (a corporation
owned in part and financed by Air Canada) into common shares of
As a result of this reorganization, the Corporation has relinquished
all of its shareholdings in Canadian Airlines for a total of $1.00.
Canadian Airlines is now a wholly owned subsidiary of AlbertaCo.
Shareholders of the Corporation will not receive any consideration
under the Plan. The Corporation is now a public shell without any
DELISTING OF SHARES
The Corporation also announced today that The Toronto Stock Exchange
(the "Exchange") will be delisting the Corporation's Common Shares
and Non-Voting Common Shares at the close of trading tomorrow, July
6, 2000. The Exchange suspended all trading in the Corporation's
Common Shares and Non-Voting Common Shares immediately following the
issuance of the Order by the Court on June 27, 2000.
Jul 5, 00, 6:10 pm
Thanks A Flygirl. As a former Cdn shareholder (I sold to AC as did most of us, but still hold AC shares to keep a piece of Cdn), it's been a long and turbulent flight that we've (employees, shareholders and customers) been on for the past many years. I suppose we're taxiing into the terminal now. So it's up to the employees of both airlines to resolve the seniority issue, and ready ourselves for the coming years of flights.
While we will all miss the Cdn of past, I'm sure I speak for all of us who post to this forum when I say that I'm glad this has all been done without the loss of any online staff jobs at Cdn. You folks have given so much to keep the geese in the air, and as much as any creditor, put real money on the line in the form of wage cuts. I hope you'll now be welcomed into the AC family like wanted adoptees, and that much of the earlier resentment from some AC staff will disappear.
Jul 5, 00, 7:50 pm
Thank you for your kind sentiments. Maybe I personally have an idealistic faith in the compassion of humanity or the human capacity to let bygones be bygones but I feel confident stating that the merger of the two work forces, speaking for my department, will not be as painful as everyone, employees and public alike, perceived last November. We are all so dizzy trying to keep up with the daily changes that there is no time left over in our waking hours to perpetuate the historical animosity.
Tonight voting ends on the contact proposal negotiated between the CAIL fa's and AC. Results should be announced tomorrow. It sounds like ratification will be the outcome.
We have already been given notice to present ourselves for AC uniform fittings starting yesterday. The game plan is to have us wearing them enmasse by December of this year.
I shed one skin regretfully yet do so simultaneouly with anticipation in donning the new one. Many AC employees have also expressed equal eagerness in having us on board so that we can all get on with our careers jointly.
Although I have not expressed the thought, I thank you all collectively for making me feel welcomed on this forum and for posting your appreciation for any information of interest that I have been able to contribute.
Jul 5, 00, 7:56 pm
It's always refreshing to read the news and views you bring to FlyerTalk. Thanks for keeping a level head in the crazy skies.
See you up there! http://www.flyertalk.com/forum/biggrin.gif