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.
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" concerning anticipated developments and events that may occur in the future. Forward-looking information contained in this news release includes but is not limited to the Company's future intentions as it relates to a creditor protection, continuing operations in the future or the resumption of trading of the Shares on the Cboe.
In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the receipt of financing to commence creditor protection, restructuring or other formal court proceedings, the accuracy, reliability and success of Jetlines' business model; the continued compliance with the terms of governmental approvals; the legislative and regulatory environments of the jurisdictions where Jetlines will carry on business or have operations; the impact of competition and the competitive response to Jetlines' business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include risks related to, the Company's negative working capital position, the ability to obtain financing, the impact of general economic conditions, domestic and international airline industry conditions, supply chain disruptions causing delays in expected timelines, future relations with shareholders, volatility of fuel prices, increases in operating costs, terrorism, pandemics, natural disasters, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines' operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of (or compliance with) the necessary licenses from regulatory agencies, and the additional risks identified in the "Risk Factors" section of the Company's reports and filings with applicable Canadian securities regulators. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those described in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update any forward-looking information.