The air carrier has also reached an agreement with its creditors to defer the maturity of its debts for one year. company has asked the federal government.
The Montreal airline announced on Friday that it has reached an agreement with the Emergency Funding Corporation Canada Enterprises (CFUEC), a federal Crown corporation, giving it access to an additional $100 million in cash.
Transat has also agreed with its creditors to defer by one year the maturity of debts in the amount of $198 million maturing 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 financing package also makes available to Transat an additional credit facility of a maximum amount of $50 million subject to certain preconditions that must be met no later than July 29, 2023, including the x27;obtaining additional financing from a third party.
These agreements strengthen the company's financial situation, said Annick Guérard, President and CEO, in a statement.
“This significant funding milestone, combined with sales that have been doing well for 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.