Air Canada to get $4.7bn in state loans and equity
The Canadian government will buy C$500m worth of shares at a discount, with workforce and dividend conditions
Montreal/Ottawa — Air Canada has reached a deal with the Canadian government for loans and equity worth nearly C$5.9bn ($4.7bn), a package to help the airline get through the pandemic and restore flights to remote parts of the country.
The state, which sold off its ownership interest in the 1980s, will once again own a piece of Canada’s largest airline, buying C$500m worth of shares at a discount. Prime Minister Justin Trudeau’s government also negotiated warrants as part of a broad financing agreement that makes Air Canada eligible for five new credit facilities totaling C$5.38bn, according to a company statement...
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