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Transat Delays Closing Of AC Deal For Second Time

Transat A.T. Inc. has delayed the closing of the deal with Air Canada until August 27.

It is the second time that Transat has sought a delay, initially requesting that the deal be delayed to July 27.

The company advised of the first delay in its Q2 disclosure stating that: “Under the arrangement agreement, the deadline for obtaining the regulatory approvals cannot be extended beyond December 27, 2020. This date, initially set for June 27, 2020 may be deferred, to the extent that the regulatory approvals are not obtained, for three one-month periods upon notification by one of the parties, and subsequently for three additional one-month periods under certain conditions. The Corporation has informed Air Canada of its decision to activate the first one-month period, which defers, for now, the June 27 deadline to July 27, 2020.”

The deal has been bogged down in the approval process both here in Canada and overseas with the EU, with Transat officials indicating that they are expecting the EU’s decision between Sept. 30 and Nov. 19.

 

 

 

 

Posted in Airlines, COVID-19, News

 

 

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