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Canadian Airlines board okays recast plan
Vancouver, April 20: Air Canada's (Toronto:AC.TO - news) newly acquired Canadian Airlines Corp. (Toronto:CA.TO - news) unit said on Thursday its board has approved a reorganization plan for the airline that sought protection from its creditors last month. The plan to be submitted to the court in Alberta next week would restructure and reduce Canadian Airline's debt and make the airline a wholly-owned subsidiary of Air Canada, which would then secure the restructured debt. Montreal-based Air Canada currently owns 82 percent of Calgary-based Canadian Airlines Corp., which has struggled financially for years and sought court protection in a dispute with a group of U.S. bondholders.``The purpose of the plan is to provide a fair recovery to affected creditors of the Corporation and Canadian Airlines and to provide Canadian Airlines with the financial stability necessary to continue its business operations in conjunction with Air Canada,'' Canadian said on Thursday. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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