By Reuters Staff
(Adds context, details)
MONTREAL, April 28 (Reuters) - Struggling Canadian tour operator Transat AT is very close to reaching a financial aid deal with the federal government involving a loan, two sources familiar with the matter told Reuters on Wednesday.
The deal would involve a loan under Canada’s Large Employer Emergency Financing Facility (LEEFF), the sources said on condition of anonymity because the talks are confidential.
Transat, which is scheduled to hold its annual general meeting on Thursday, declined to comment. The federal finance ministry, which is leading the talks with Transat, was not immediately available for comment.
Canadian tour operator Transat close to government aid deal -sources Reuters 4/28/2021
MONTREAL, April 28 (Reuters) - Struggling Canadian tour operator Transat AT is very close to reaching a financial aid deal with the federal government involving a loan, two sources familiar with the matter told Reuters on Wednesday.
The deal would involve a loan under Canada s Large Employer Emergency Financing Facility (LEEFF), the sources said on condition of anonymity because the talks are confidential.
Transat, which is scheduled to hold its annual general meeting on Thursday, declined to comment. The federal finance ministry, which is leading the talks with Transat, did not respond to a request for comment. (Reporting By Allison Lampert in Montreal Editing by Denny Thomas and Chris Reese)
One year after the official declaration of a global pandemic, the wait is over for
Air Canada(TSX:AC). The federal government unveiled a financial support package for the beleaguered airline company. Negotiations with other airlines on possible aid agreements are ongoing.
The discussions leading to the deal were tortuous more than smooth. According to Finance Minister Chrystia Freeland, the breakthrough is overdue because the government wanted a good deal, not just any deal. Still, all is well that ends well. Freeland credits Deputy Finance Minister Michael Sabia for his role as lead negotiator.
The $5.9 billion-dollar deal
The Air Canada package is worth $5.9 billion, a combination of secured and unsecured credit facilities, plus a 6% equity stake for the federal government. The latter will purchase $500 million worth of the airline stock. Some industry observers weren’t surprised that the deal includes public participation in equity.
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