Thursday, April 24, 2003

Prof. Emeritus Jacob Ziegel provided his insight into Canadian bankruptcy protection laws to the National Post for an article on Air Canada's recent filing for protection under the Companies' Creditors Arrangement Act ("Company must admit it can't meet financial obligations", The National Post, April 2, 2003).

Describing the implications of this filing for the airline company, Prof. Ziegel explained "Not only do they get to keep creditors at bay, they can suspend making any payments. They can stop secured creditors from repossessing any equipment and collateral. Since Air Canada has probably leased most of its equipment, the effect of a stay order will be that none of the leasors will be able to seize aircraft in Canada."