AC and TRZ Agree to Terminate Arrangement

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RRJetPilot
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by RRJetPilot »

If you think AC will go bankrupt you are dreaming. Just like when years ago you were cheer-leading WJ and all your predictions on eating our lunch. And if you are hoping for the fall of AC, I think you should be more worried about your own backyard. If AC fails, WJ will be in more trouble,and you will end up flying a pink tail for peanuts or unemployed. I on the other hand hope both companies recover and prosper.
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Sharklasers
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Sharklasers »

RRJetPilot wrote: Fri Aug 28, 2020 2:45 pm If you think AC will go bankrupt you are dreaming.

Im a big AC guy but your probably going to have to eat those words about bankruptcy in 10-12 months unless things start to change in a big hurry.
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brooks
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by brooks »

RRJetPilot wrote: Fri Aug 28, 2020 2:45 pm If you think AC will go bankrupt you are dreaming. Just like when years ago you were cheer-leading WJ and all your predictions on eating our lunch. And if you are hoping for the fall of AC, I think you should be more worried about your own backyard. If AC fails, WJ will be in more trouble,and you will end up flying a pink tail for peanuts or unemployed. I on the other hand hope both companies recover and prosper.
Rattled your cage a bit I see. I never said AC would fall. AC going into CCAA would have nothing to do with WJ being in trouble. The fact that AC had to raise an enormous amount of debt to stay afloat tells you how bad things are. That money will have to be re-paid at some point and the financial adviser was pointing out that with having to raise that much cash is going to dilute your shares and depress your stock price. Don't plan on $50/share anytime soon. As for this WJ vs AC garbage you're bringing up I suggest you look a the cost vs revenue at this point in time. One of these airlines looks incredibly expensive to run.
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rudder
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by rudder »

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Dry Guy
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Dry Guy »

If somehow the deal doesn't expire on September 27th is the final limit December 27th?
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iflyroads
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by iflyroads »

Dry Guy wrote: Tue Sep 01, 2020 8:39 am
If somehow the deal doesn't expire on September 27th
That's the important question right now. A clause bought up a few posts ago, Transat maybe able to extend the deal beyond Sept 27th because of the EU probe (Again, I am no expert).

May make the difference between killing the deal in 26 days, or dragging it on for another few months. We have also yet to hear from the TC minister about his decision.
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TheStig
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by TheStig »

Looks like the deadline has been moved back to Dec 11th.

https://www.reuters.com/article/us-tran ... SKBN25S53S
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FL320
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL320 »

So AC recently sent the missing documents to the EU commission, doesn’t look like they want to kill the process after all. But who wouldn’t be interested in buying the competition for 150 millions only instead of 720? Thanks to the new loan (approved by AC) AT can sustain 2 more years at the current expense rate, and it will benefit AC anyway.
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

FL320 wrote: Tue Sep 01, 2020 2:33 pm So AC recently sent the missing documents to the EU commission, doesn’t look like they want to kill the process after all. But who wouldn’t be interested in buying the competition for 150 millions only instead of 720? Thanks to the new loan (approved by AC) AT can sustain 2 more years at the current expense rate, and it will benefit AC anyway.
I don’t think there is any doubt the current deal will either be renegotiated or expire.

If allowed to expire the “then what” question is anyone’s guess. Does AC walk away? Does AC attempt a redo on the deal? Trying to deduce what they are planning based on current choices is impossible as their fiduciary duty to shareholders and the current deal is legally binding. Legally binding that is until it expires.

Only when the deal expires can the parties be expected to act and talk freely about the future of the deal. Until then everything else is pure speculation.

My personal guess. I stress the word guess. If the parties are still interested in the deal it will be renegotiated before it expires. If the deal is permitted to simply expire it probably means the deal is off. My guess is the deal simply expires.
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planebored
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by planebored »

Anyone who thinks this deal is still happening in it's current form, perhaps even at all... is living in a fantasy land.
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Cappo1
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Cappo1 »

planebored wrote: Wed Sep 02, 2020 10:34 am Anyone who thinks this deal is still happening in it's current form, perhaps even at all... is living in a fantasy land.
For sure . No deal. It was a fantastic concept pre pandemic . Bad timing.
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Cappo1
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Cappo1 »

FL320 wrote: Tue Sep 01, 2020 2:33 pm So AC recently sent the missing documents to the EU commission, doesn’t look like they want to kill the process after all. But who wouldn’t be interested in buying the competition for 150 millions only instead of 720? Thanks to the new loan (approved by AC) AT can sustain 2 more years at the current expense rate, and it will benefit AC

Hey Dr. Faucci . AC is playing the game. We only want your hulls.
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rudder
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by rudder »

This pretty well sums up where the transaction is right now.

Excerpt from TRZ Q3 results press release:

“While the Corporation remains firmly committed to completing the transaction with Air Canada, certain factors beyond its control and related to the COVID-19 pandemic could influence the outcome of the proposed arrangement. The market conditions of the global industry have been completely transformed. Among other things, the vast majority of North American, European and international air carriers have requested financial assistance measures, but have had to implement reductions in capacity (as the Corporation did). This context could impact the obtaining of approvals from regulatory authorities, especially regarding the appropriate package of remedies aimed at obtaining those approvals.

Moreover, owing to the pandemic and the continued restrictions on non-essential travel, the Corporation is actively looking to obtain additional sources of financing. The covenants undertaken under the arrangement agreement with Air Canada restrict and govern the Corporation's capacity to obtain additional sources of financing and may require Air Canada's prior consent. Although the agreement provides that Air Canada's consent may not be unreasonably withheld, there is no certainty that Air Canada will consent to the obtaining of additional sources of financing by the Corporation.

If the required approvals are obtained and the conditions are met, it is now expected that the arrangement will be completed during the fourth quarter of the 2020 calendar year. 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 successively informed Air Canada of its decision to activate the first three initial one-month periods, which defers, for now, the June 27 deadline to September 27, 2020.”
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iflyroads
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by iflyroads »

https://www.bnnbloomberg.ca/transat-sha ... -1.1497807

Stock price below $4 yesterday.

Outside date on Transat investor relations website shows Sept 27th.

As far as I know AC has not used a 30 day extension nor is it planning to.

Now we wait to see if Transat can extend all the way till December based on the EU probe and missing documents. Its not over till it's over. This is 2020, anything can happen.
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altiplano
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by altiplano »

8 year low?

Isn't it just because the whole market is down?
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Thorjones
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Thorjones »

Today is the outside date deadline. Nothing in the news Friday about an extension.

Maybe tomorrow when the markets open?
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rudder
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by rudder »

Whatever the parties have to say on the extension - either separately or jointly - will likely be on the newswire tomorrow.
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FL320
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by FL320 »

It would be great that AC confirm their intention once for all; so everyone could move on. Why wait if they don’t want it anymore?
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rudder
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by rudder »

FL320 wrote: Sun Sep 27, 2020 9:35 am It would be great that AC confirm their intention once for all; so everyone could move on. Why wait if they don’t want it anymore?
Up until today, AC has had no choice but to say (publicly) that the deal is still live. To have done otherwise would potentially have put them in breach of the agreement with financial liability.

Sept 28 is the first opportunity since signing that AC can publicly take a different position.
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Fanblade
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Re: Air Canada and Transat announce Increased Purchase Price to $18 per Share

Post by Fanblade »

FL320 wrote: Sun Sep 27, 2020 9:35 am It would be great that AC confirm their intention once for all; so everyone could move on. Why wait if they don’t want it anymore?
A contract? Getting sued for not fulfilling their obligations?

AC doesn’t have the $ to make this work anymore. They will run out the clock. I’m just not completely certain the clock ran out yesterday. If Transat still has the ability to extend then AC will just stay silent or vague.

If the clock ran out yesterday then parties will speak freely Monday.

Edited:

Rudder beat me to it.
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