UPDATE 1-Canadian tour operator Transat secures C$700 mln in authorities funding
(Provides details about the offer, background)
April 29 (Reuters) – Struggling Canadian tour operator Transat AT claimed on Thursday it would borrow up to C$700 million ($569.71 million) from the Canadian governing administration and use a portion of the resources to reimburse shoppers whose journey plans had to be canceled.
The news comes hardly a day immediately after Reuters reported that Transat was close to achieving a money aid deal with the federal authorities involving a mortgage.
Transat was already battling because of to the COVID-19 pandemic when Air Canada dropped its merger programs with the firm before this month, making uncertainty for the Montreal-primarily based operator of leisure provider Air Transat.
Transat stated it would use C$390 million to assist the company’s liquidity needs right until its company has recovered adequate to generate hard cash and the relaxation to reimburse travelers.
Transat has suspended flights right until June due to pandemic limitations that have battered journey and has explained it requires at least C$500 million in financing this yr.
It has repayment obligations because of on April 29 for a C$50 million revolving facility and a C$250 million brief-time period bank loan that matures on June 30. ($1 = 1.2287 Canadian pounds) (Reporting by Ankit Ajmera in Bengaluru Modifying by Shailesh Kuber and Anil D’Silva)