Transat obtains $100 million in federal funding


Transat obtains funding from  100 million federal dollars

The air carrier has also reached an agreement with its creditors to defer the maturity of its debts by one year.

Transat has obtained the additional financial boost it had asked the federal government.

The Montreal-based airline announced on Friday that it has entered into an agreement with Canada Corporate Emergency Financing Corporation (CFUEC), a federal Crown corporation, which gives it access to additional liquidity of $100 million.

Transat has also reached an agreement with its creditors to defer by one year the maturity of its debts. x27;an amount of $198 million which will expire in April 2023. Its creditors have also agreed to postpone from October 2022 to October 2023 the time when the company must comply with certain financial covenants.

In addition, the financial package provides Transat with an additional credit of a maximum amount of $50 million subject to certain preconditions that must be met no later than July 29, 2023, in particular obtaining additional financing from a third party.

These agreements strengthen the company's financial position, said Annick Guérard, President and Chief direction, in a press release.

“This important funding milestone, combined with sales that have been doing well for the past few months, will provide us with the financial flexibility necessary to deploy our strategic plan with optimism and confidence. »

— Annick Guérard, President and Chief Executive Officer of Transat

Transat had already obtained federal support on April 29, 2021 to help it overcome the effects of the pandemic. The company had also secured an additional $43.3 million on March 10, 2022.


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