Originally Posted by
pitz
Geez, didn't CP encumber every last asset possible, prior to their demise?
Can't believe AC is trying to grow capacity against this backdrop. They desperately need yield.
Their existing facility is secured against some of the same assets. I suspect (although don't know) that this is a refinance at a lower interest. The orignal facility was at 12.75% with EDC and GE Capital as some of the lenders and was secured by anything possible:
"
Air Canada's obligations under the Credit Agreement are secured by a
security interest and hypothec over substantially all of the present and
after-acquired property of Air Canada and its subsidiaries."