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Clarification by Transat A.T. Inc. following injunction application by Financière Outremont Inc.
Clarification by Transat A.T. Inc. following injunction application by Financière Outremont ...
About this update from Transat A.t. Inc.
[{"type":"text","content":"\n\n\n\n Clarification by Transat A.T. Inc. following injunction application by Financière Outremont Inc.\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n\n MONTREAL\n \n\n ,\n \n\n June 27, 2025\n \n\n /CNW/ - Transat A.T. Inc. (\"Transat\" or the \"Corporation\") announces that on\n \n June 27, 2025\n \n , it was served with an application for an interlocutory injunction and permanent injunction (the \"Injunction Application\") from Financière Outremont Inc. (\"Financière\n \n Outremont\n \n \"), a company controlled by Mr. Pierre Karl Péladeau, in connection with the announcement of the agreement in principle published on\n \n June 5, 2025\n \n , with Canada Enterprise Emergency Funding Corporation (\"CEEFC\") regarding the restructuring of the debt incurred by Transat under the Large Employer Emergency Funding Facility (LEEFF) program managed by CEEFC during the COVID-19 pandemic (the \"Transaction\").\n \n\n Since the announcement of the agreement in principle, the Corporation's share price has increased from\n \n $1.64\n \n at market close on\n \n June 4, 2025\n \n , to\n \n $2.83\n \n at market close on\n \n June 27, 2025\n \n , representing a 72% increase.\n \n\n As a reminder, upon completion of the Transaction, the outstanding debt with CEEFC will be written-off by nearly 50%, from\n \n $772M\n \n as at\n \n March 31, 2025\n \n , to\n \n $334M\n \n as follows:\n \n\n\n Repayment of\n \n $41.4M\n \n in cash to CEEFC\n \n\n Credit facilities reduced to a single credit facility of\n \n $175M\n \n\n\n Issuance to CEEFC of a\n \n $158,735,045\n \n debenture maturing in 10 years\n \n\n Issuance to CEEFC of non-voting preferred shares convertible into Class B Voting Shares valued at\n \n $16,264,955\n \n (the \"Preferred Shares\")\n \n\n Extension of the expiry of the 13,000,000 existing warrants (the \"Warrants\") to\n \n April 29, 2035\n \n\n\n\n At no time will the exercise of Warrants or conversion of Preferred Shares result in CEEFC beneficially owning more than 19.9% of the common shares, and therefore, CEEFC...