Ottawa gives Transat a $100 million emergency loan

The federal government in Ottawa once again has the struggling tour operator Transat AT. saved

Montreal-based company says it has received an emergency loan from the government of
Canada worth $100 million.

Latest Federal Loan Comes 15 Months After Transat Receives $700 Million Emergency Loan
of the federal government. At the time, the company said the federal loan would be used to:
refund passengers.

Transat AT, which specializes in flying passengers to sunny destinations, is struggling financially,
with a loss of $213 million in the first half of this year. The increasing losses are despite travelers
packing airports emerging from the COVID-19 pandemic.

Ottawa’s new loan includes provision for another $50 million in federal funding
Transat meets certain conditions, such as obtaining additional financing from a third party.

The airline said it has reached agreements with all of its lenders to curb credit
deadlines until April 2024.

Transat’s total debt was $1.78 billion as of June 30, with revenue of $561 million in the
first half of this year.

Latest Federal Loan Limits Executive Pay, Blocks Dividends and Stocks
repurchase, and requires an annual climate-related disclosure report from Transat AT

Shares of Transat are down 26% this year and are trading at $3.20 a share.

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