TORONTO, ON / ACCESSWIRE / August 20, 2024 / Canada Jetlines Operations Ltd. (Cboe CA:CJET) (“Canada Jetlines” or the “Company“) announced that it has filed a Notice of Intention to Make a Proposal (the “Notice of Intention“) pursuant to the Bankruptcy and Insolvency Act (Canada) (“BIA“). Pursuant to the Notice of Intention, BDO Canada Limited has been appointed as proposal trustee on behalf of the Company and will assist the Company in its restructuring efforts. Dentons Canada LLP is legal counsel to the Company.
A Notice of Intention is the first stage of a restructuring process under the BIA, which permits the Company to pursue a restructuring of its affairs. The filing of the Notice of Intention has the effect of imposing an automatic stay of proceedings (“Stay“) that will protect the Company and its assets from claims and enforcement proceedings of creditors and contractual counterparties. During the Stay, subject to certain exceptions as set out in the BIA, no creditor has any remedy against the Company or its property and no person may terminate or amend any agreement, including a security agreement, or claim an accelerated payment, or a forfeiture of the term, under any agreement, including a security agreement, by reason only that the Company is insolvent or that the Notice of Intention has been filed. The initial Stay period is 30 days and may be extended by court order. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner, or at all.
Due to the above-mentioned filing of the Notice of Intention, Cboe Canada (“Cboe“) has suspended the trading of the Company’s common and variable voting shares (the “Shares“) until such a time as the Company is in compliance with the Cboe continued listing requirements. There is no certainty as to timing or likelihood that the Shares will recommence trading on the Cboe, and if within 150 days of the suspension date the suspension has not been lifted, the securities of the Company will be automatically delisted without further notice.
