National/Financial Post reporting from the Cdn bankruptcy court in calgary that AC bailed Cdn out prior to Christmas, fearing chaos and backlash over the holiday period if the carrier went under. (This was prior to closing of share purchase offer which would happen only in January.)
AC was fully booked over the period and would be unable to handle tens of thousands of travellers booked on Cdn if it shut down before year-end. News stories had so crippled Cdn, that new bookings were off seriously in the final quarter (substantiated by recently released Cdn quarterly report) but obligations to booked passengers remained high.
AC's Robert Peterson (CFO) said the carrier arranged to buy Cdn's YYZ-TKO routes for $25m and came up with another $20m a few weeks later in exchange for aircraft leases and a flight simulator. This led to suspension of payment to its creditors by Cdn, according to the report.