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Any news from CCAA hearings?


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Air Canada Announces Restructuring Timetable



MONTREAL, April 22 /CNW Telbec/ - Air Canada announced today the
following anticipated timetable to July 31, 2003 in its restructuring plan,
further to today's hearing on various CCAA proceedings before Honourable
Justice J. Farley in Ontario Superior Court of Justice.
The Court recognized that there is much work ahead to achieve the
restructuring of Air Canada and prioritized the more pressing matters, such as
approval of financing during the restructuring phase. Justice Farley also
approved Air Canada's request, supported by some of its unions, to a
standstill on further action impacting its collective agreements until the
earlier of May 9, 2003, or two days after the commencement of negotiations
between Air Canada, Air Canada Jazz and their respective unions.

April 25 - Hearing on approval of General Electric Capital Canada
Inc.'s Debtor-in-Possession Financing Facility and the
CIBC Aerogold Financing Facility and new commercial
agreement, consideration of extension of stay order
until June 30, 2003 and postponement of Annual General
Meeting of Shareholders

April 30 - Commencement of negotiations between Air Canada, Air
Canada Jazz, the Court-appointed Monitor and Union
leaders respecting labour cost realignment including
immediate interim measures

Mid-May - Air Canada's Post-Restructuring Business Plan becomes
available for key economic stakeholders

Late May - Commencement of meetings between Air Canada, Monitor and
lessors, lenders, key suppliers and other economic
stakeholders.

June 30 - Target date for completion of labour restructuring plans
including pension program restructuring

July 31 - Target date for submission of proposed CCAA
Restructuring Plan and CBCA Plan of Arrangement

These dates may change depending on events and it is likely there will be
several hearings before the Court during this period.




-30-

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Just out of curiosity, how are they burning through so much cash when none of the bills are being paid? I assume(perhaps incorrectly) that during CCAA the aircraft lease payments are on hold, and that the suppliers are not being paid (this I know for a fact). Would debt servicing costs be in abeyance as well?

Kinda makes you wonder doesn't it...

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