(Montreal) Transat has obtained the additional financial boost requested from the federal government.
Posted at 8:55 a.m.
The Montreal airline announced on Friday that it has reached an agreement with the Canada Enterprise Emergency Financing Corporation (CFUEC), a federal Crown corporation, giving it access to additional cash of 100 million .
Transat has also agreed with its creditors to defer for one year the maturity of debts in the amount of $198 million maturing in April 2023. Its creditors have also agreed to defer from October 2022 to October 2023 the where the company must comply with certain financial covenants.
In addition, the financing package also makes available to Transat an additional credit facility for a maximum amount of $50 million subject to certain preconditions that must be met no later than July 29, 2023, including obtaining a additional third-party funding.
These agreements strengthen the financial situation of the company, said Annick Guérard, president and chief executive officer, in a press release. “This important financing milestone, combined with sales that have been doing well for several months, will provide us with the financial flexibility necessary to deploy our strategic plan with optimism and confidence. »
Transat had already obtained federal support on April 29, 2021 to help it overcome the effects of the pandemic. The company had also obtained an additional amount of 43.3 million on March 10, 2022.