FlyerTalk Forums - View Single Post - Creditors reject Canadian's plan - should I be worried about my points?
Old Apr 27, 2000, 7:49 am
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YYZ
 
Join Date: Mar 2000
Location: Toronto, Ontario, Canada
Programs: AC*E
Posts: 288
Creditors reject Canadian's plan - should I be worried about my points?

Not to mention the nightmare with AMEX, but more stress for CDN Plus pointsholders (myself included):


NP says creditors reject Canadian's plan

Canadian Airlines Corporation
CA
Shares issued 40,684,864
2000-04-26 close $0.7
Thursday Apr 27 2000
Also Air Canada (AC)
The National Post reports in its Thursday, April 27, edition
that Canadian Airlines' financial restructuring plan has been
given a rude reception, with secured creditors rejecting it
immediately and unsecured creditors vowing to sue. The
National Post's Peter Fitzpatrick writes that the airline, which
is controlled by Air Canada, filed its plan of arrangement for
restructuring its $3.5-billion debt with an Alberta court late on
Tuesday. The plan is supposed to be voted on by creditors on
May 26, but within hours a majority of the secured creditors
had already voted against the proposal. A lawyer representing
the holders of Canadian's secured $175-million (U.S.) bonds
said his clients voted to reject the plan at a formal meeting in
New York yesterday. Under the plan, the secured noteholders
would see the principal of their notes cut to about
$162-million and the interest rate reduced. The group also
reconfirmed its intention to go to court on May 3, to have
Canadian's protection under the Companies' Creditors
Arrangement Act lifted so assets can be seized.
(c) Copyright 2000 Canjex Publishing Ltd.
http://www.canada-stockwatch.com
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