Loyalty program Groupe Aeroplan Inc. AER-T would hold the upper hand if Air Canada were to file for bankruptcy protection, Aeroplan chief executive officer Rupert Duchesne said yesterday. "Our view is that we have very strong negotiating power to prevent a nasty haircut and we also have a lot of capital," Mr. Duchesne said during a webcast from New York. He said Air Canada has made "substantial progress" on pension issues to avoid bankruptcy protection, but Aeroplan - which sees the airline as a crucial partner - is positioned to supply debtor-in-possession financing, if required. CIBC World Markets Inc. analyst Chris Murray said Air Canada's parent, ACE Aviation Holdings Inc., would have roughly $159-million in cash should ACE wind down, after paying out $64-million to holders of convertible notes, $82-million to preferred shareholders, $41-million in tax liabilities and $27-million in other expenses. AER (TSX) rose 21 cents to $7.76.
© The Globe and Mail
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.
