Canada Jetlines has entered the first stage of a restructuring process under Canada’s Bankruptcy and Insolvency Act (BIA), less than a week after ceasing operations due to a lack of financing.
A notice of intention under the BIA permits Canada Jetlines to pursue a restructuring of its affairs and has the effect of imposing an automatic stay of proceedings, the airline said in a statement.
This will protect the company and its assets from claims and enforcement proceedings from creditors and “contractual counterparties,” the airline said.
The initial stay period is 30 days, but it may be extended by court order, per the statement.
Canada Jetlines, a self-described leisure carrier that began as a low-cost…
