Latest news with #PierreKarlPéladeau
Associated Press
6 hours ago
- Business
- Associated Press
Clarification by Transat A.T. Inc. following injunction application by Financière Outremont Inc.
MONTREAL, June 27, 2025 /CNW/ - Transat A.T. Inc. ('Transat' or the 'Corporation') announces that on June 27, 2025, it was served with an application for an interlocutory injunction and permanent injunction (the 'Injunction Application') from Financière Outremont Inc. ('Financière Outremont'), a company controlled by Mr. Pierre Karl Péladeau, in connection with the announcement of the agreement in principle published on June 5, 2025, with Canada Enterprise Emergency Funding Corporation ('CEEFC') regarding the restructuring of the debt incurred by Transat under the Large Employer Emergency Funding Facility (LEEFF) program managed by CEEFC during the COVID-19 pandemic (the 'Transaction'). Since the announcement of the agreement in principle, the Corporation's share price has increased from $1.64 at market close on June 4, 2025, to $2.83 at market close on June 27, 2025, representing a 72% increase. As a reminder, upon completion of the Transaction, the outstanding debt with CEEFC will be written-off by nearly 50%, from $772M as at March 31, 2025, to $334M as follows: At no time will the exercise of Warrants or conversion of Preferred Shares result in CEEFC beneficially owning more than 19.9% of the common shares, and therefore, CEEFC will not exert control over the Corporation. The Injunction Application by Financière Outremont aims in particular to prevent the closing of the Transaction, beneficial for the Corporation, unless the Corporation obtains shareholder approval, which the Corporation deems not required. In this regard, the Corporation reiterates that it has rightfully relied on the formal valuation and minority approval exemptions contained in sections 5.5(g) and 5.7(1)(e) of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions, given that the Transaction significantly strengthens the financial position of the issuer, which was becoming extremely precarious due to the size of its debt, as repeatedly disclosed in the Corporation's public filings. The Corporation believes the allegations made by Financière Outremont are unfounded and intends to contest them vigorously and seek dismissal of the Injunction Application. This application does not affect the Corporation's operations. The Corporation recalls that the announced Transaction is the result of discussions initiated over 18 months ago with CEEFC and the review of a range of alternatives conducted through a robust process with the assistance of a special advisory committee of the Board of Directors composed solely of independent directors, with a view to establishing an optimal long-term capital structure for the Corporation. The Transaction was unanimously approved by the Board of Directors on the recommendation of the special committee, which completed its work with the assistance of external financial and legal advisors. The usual conditional approval of the Toronto Stock Exchange was obtained regarding the Preferred Shares component. The Transaction is subject to the finalization of definitive agreements. The Corporation does not intend to comment further on the Injunction Application out of respect for the ongoing judicial process unless circumstances warrant otherwise. For more details on the Transaction, please refer to the press release issued by the Corporation on June 5, 2025, available on SEDAR+ at Caution Regarding Forward-Looking Information This news release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements are identified by the use of terms and phrases such as 'anticipate' 'believe' 'could' 'estimate' 'expect' 'intend' 'may' 'plan' 'potential' 'predict' 'project' 'will' 'would', the negative of these terms and similar terminology, including references to assumptions. All such statements are made pursuant to applicable Canadian securities legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, economic conditions, changes in demand due to the seasonal nature of the business, extreme weather conditions, climatic or geological disasters, war, political instability, measures taken, planned or contemplated by governments regarding the imposition of tariffs on exports and imports, real or perceived terrorism, outbreaks of epidemics or disease, consumer preferences and consumer habits, consumers' perceptions of the safety of destination services and aviation safety, demographic trends, disruptions to the air traffic control system, the cost of protective, safety and environmental measures, competition, maintain and grow its reputation and brand, the availability of funding in the future, the Corporation's ability to repay its debt from internally generated funds or otherwise, the Corporation's ability to adequately mitigate the Pratt & Whitney GTF engine issues, fluctuations in fuel prices and exchange rates and interest rates, the Corporation's dependence on key suppliers, the availability and fluctuation of costs related to our aircraft, information technology and telecommunications, cybersecurity risks, changes in legislation, regulatory developments or procedures, pending litigation and third-party lawsuits, the ability to reduce operating costs through the Elevation program initiatives, among other things, the Corporation's ability to attract and retain skilled resources, labour relations, collective bargaining and labour disputes, pension issues, maintaining insurance coverage at favourable levels and conditions and at an acceptable cost, and other risks detailed in the Risks and Uncertainties section of the MD&A included in our 2024 Annual Report. The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. The Corporation considers that the assumptions on which these forward-looking statements are based are reasonable. These statements reflect current expectations regarding future events and operating performance, speak only as of the date this news release is issued, and represent the Corporation's expectations as of that date. For additional information with respect to these and other factors, see the MD&A for the quarter ended April 30, 2025 filed with the Canadian securities commissions and available on SEDAR+ at The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation. About Transat A.T. Inc. Founded in Montreal 37 years ago, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted 2025 World's Best Leisure Airline by passengers at the Skytrax World Airline Awards, it flies to international destinations. Air Transat's fleet includes some of the most energy-efficient aircraft in their category. (TSX: TRZ) Media: Alex-Anne Carrier Senior Advisor, Communications and Public Affairs [email protected] Media site: Financial analysts: Jean-François Pruneau Chief Financial Officer [email protected] SOURCE Transat A.T. Inc.
Cision Canada
10 hours ago
- Business
- Cision Canada
Clarification by Transat A.T. Inc. following injunction application by Financière Outremont Inc. Français
MONTREAL, June 27, 2025 /CNW/ - Transat A.T. Inc. ("Transat" or the "Corporation") announces that on June 27, 2025, it was served with an application for an interlocutory injunction and permanent injunction (the "Injunction Application") from Financière Outremont Inc. ("Financière Outremont"), a company controlled by Mr. Pierre Karl Péladeau, in connection with the announcement of the agreement in principle published on June 5, 2025, with Canada Enterprise Emergency Funding Corporation ("CEEFC") regarding the restructuring of the debt incurred by Transat under the Large Employer Emergency Funding Facility (LEEFF) program managed by CEEFC during the COVID-19 pandemic (the "Transaction"). Since the announcement of the agreement in principle, the Corporation's share price has increased from $1.64 at market close on June 4, 2025, to $2.83 at market close on June 27, 2025, representing a 72% increase. As a reminder, upon completion of the Transaction, the outstanding debt with CEEFC will be written-off by nearly 50%, from $772M as at March 31, 2025, to $334M as follows: Repayment of $41.4M in cash to CEEFC Credit facilities reduced to a single credit facility of $175M Issuance to CEEFC of a $158,735,045 debenture maturing in 10 years Issuance to CEEFC of non-voting preferred shares convertible into Class B Voting Shares valued at $16,264,955 (the "Preferred Shares") Extension of the expiry of the 13,000,000 existing warrants (the "Warrants") to April 29, 2035 At no time will the exercise of Warrants or conversion of Preferred Shares result in CEEFC beneficially owning more than 19.9% of the common shares, and therefore, CEEFC will not exert control over the Corporation. The Injunction Application by Financière Outremont aims in particular to prevent the closing of the Transaction, beneficial for the Corporation, unless the Corporation obtains shareholder approval, which the Corporation deems not required. In this regard, the Corporation reiterates that it has rightfully relied on the formal valuation and minority approval exemptions contained in sections 5.5(g) and 5.7(1)(e) of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions, given that the Transaction significantly strengthens the financial position of the issuer, which was becoming extremely precarious due to the size of its debt, as repeatedly disclosed in the Corporation's public filings. The Corporation believes the allegations made by Financière Outremont are unfounded and intends to contest them vigorously and seek dismissal of the Injunction Application. This application does not affect the Corporation's operations. The Corporation recalls that the announced Transaction is the result of discussions initiated over 18 months ago with CEEFC and the review of a range of alternatives conducted through a robust process with the assistance of a special advisory committee of the Board of Directors composed solely of independent directors, with a view to establishing an optimal long-term capital structure for the Corporation. The Transaction was unanimously approved by the Board of Directors on the recommendation of the special committee, which completed its work with the assistance of external financial and legal advisors. The usual conditional approval of the Toronto Stock Exchange was obtained regarding the Preferred Shares component. The Transaction is subject to the finalization of definitive agreements. The Corporation does not intend to comment further on the Injunction Application out of respect for the ongoing judicial process unless circumstances warrant otherwise. For more details on the Transaction, please refer to the press release issued by the Corporation on June 5, 2025, available on SEDAR+ at Caution Regarding Forward-Looking Information This news release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements are identified by the use of terms and phrases such as "anticipate" "believe" "could" "estimate" "expect" "intend" "may" "plan" "potential" "predict" "project" "will" "would", the negative of these terms and similar terminology, including references to assumptions. All such statements are made pursuant to applicable Canadian securities legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, economic conditions, changes in demand due to the seasonal nature of the business, extreme weather conditions, climatic or geological disasters, war, political instability, measures taken, planned or contemplated by governments regarding the imposition of tariffs on exports and imports, real or perceived terrorism, outbreaks of epidemics or disease, consumer preferences and consumer habits, consumers' perceptions of the safety of destination services and aviation safety, demographic trends, disruptions to the air traffic control system, the cost of protective, safety and environmental measures, competition, maintain and grow its reputation and brand, the availability of funding in the future, the Corporation's ability to repay its debt from internally generated funds or otherwise, the Corporation's ability to adequately mitigate the Pratt & Whitney GTF engine issues, fluctuations in fuel prices and exchange rates and interest rates, the Corporation's dependence on key suppliers, the availability and fluctuation of costs related to our aircraft, information technology and telecommunications, cybersecurity risks, changes in legislation, regulatory developments or procedures, pending litigation and third-party lawsuits, the ability to reduce operating costs through the Elevation program initiatives, among other things, the Corporation's ability to attract and retain skilled resources, labour relations, collective bargaining and labour disputes, pension issues, maintaining insurance coverage at favourable levels and conditions and at an acceptable cost, and other risks detailed in the Risks and Uncertainties section of the MD&A included in our 2024 Annual Report. The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. The Corporation considers that the assumptions on which these forward-looking statements are based are reasonable. These statements reflect current expectations regarding future events and operating performance, speak only as of the date this news release is issued, and represent the Corporation's expectations as of that date. For additional information with respect to these and other factors, see the MD&A for the quarter ended April 30, 2025 filed with the Canadian securities commissions and available on SEDAR+ at The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation. About Transat A.T. Inc. Media site: Financial analysts: Jean-François Pruneau Chief Financial Officer [email protected] SOURCE Transat A.T. Inc.
Cision Canada
15 hours ago
- Business
- Cision Canada
The proposed debt restructuring of Transat A.T. inc. through CEEFC is contrary to the interests of the Corporation's shareholders and must be put to them for approval Français
On behalf of Financière Outremont inc., Pierre Karl Péladeau is asking the Québec Superior Court to intervene, in the absence of formal shareholder approval, and prevent the transfer of control of the Corporation to the federal government. MONTRÉAL, June 27, 2025 /CNW/ - While Transat A.T. inc. announced on June 5, 2025 that it had reached an agreement in principle with the Canada Enterprise Emergency Funding Corporation (CEEFC), a federal government agency, for the restructuring of the debt incurred by Transat A.T. inc. (the Corporation) under the Large Employer Emergency Financing Facility (LEEFF) program managed by CEEFC in the context of the COVID-19 pandemic, no official announcement has been sent to the Corporation's shareholders to inform them of the agreement. This constitutes a violation of their rights and the Corporation's obligations. As one of Transat A.T. inc.'s largest shareholders, Pierre Karl Péladeau believes that this agreement should not only be presented to shareholders, as it is of decisive importance to the Corporation's financial viability and future, but most importantly approved by a shareholder vote in accordance with basic principles of corporate governance and shareholders' ownership rights. For this reason, Pierre Karl Péladeau, on behalf of Financière Outremont inc. is compelled to ask the Superior Court to intervene before it is too late and order the Corporation not to finalize and not to close the agreement in principle before it has been approved by a shareholder vote. It is unjust and unwarranted for the Corporation to dilute its shareholders' equity without shareholder approval through a restructuring operation that ultimately does not ensure the Corporation's long-term viability, when other options are not only available but have been presented to the Corporation's Board of Directors, in accordance with the process initiated several months ago. To justify its decision to disregard its regulatory obligation to submit to its shareholders a financial transaction that is so dramatically detrimental to them, the Board of Directors of Transat A.T. Inc. states that " the transaction improves the financial position of the Corporation, which was becoming extremely precarious due to the size of its debt and maturity" and that it is "the result of discussions initiated by the Corporation over 18 months ago with CEEFC" (Corporation press release, June 5, 2025). No publicly disclosed market information suggests that the Corporation is currently insolvent or in serious financial difficulty, or that its continued operation is in doubt. The Corporation's last release was on June 12 and considerations of such import were not disclosed to the markets or shareholders in any way. Transat A. T. inc. therefore appears to be structuring the transaction in such a way as to take undue advantage of a regulatory exemption to the detriment of its shareholders' rights, when no emergency has been disclosed to the public or to shareholders that would justify flouting their rights in this way, and when it would have been easy to respect those rights by holding a proper vote. The result of the unilateral restructuring of the Corporation's debt will be to transfer control of the Corporation to the federal government, which is the Corporation's principal creditor, as well as its largest potential shareholder and the regulator of its operations. This is not in the best interests of the citizens and taxpayers of Canada and Québec. Based on the limited information available about the agreements between the Corporation and the government, the government would be able to lay its hands on any cash available or raised as it sees fit. These terms and conditions therefore grant the government de facto control of the Corporation and are not in the interests of the other shareholders.
CTV News
21-05-2025
- Business
- CTV News
TVA Group cuts 30 jobs in TV division as CEO lobs blame at rivals, regulators
TVA Group headquarters are shown prior to the company's annual general meeting in Montreal, Tuesday, May 10, 2016. THE CANADIAN PRESS/Graham Hughes TVA Group says it is cutting about 30 jobs as a slew of pressures from competitors and a lack of federal government and regulator support challenge the business. The Quebecor Media subsidiary says the cuts mainly hit its television division, which saw two overhauls in recent years that halved the company's workforce. TVA Group acting president and CEO Pierre Karl Péladeau placed some of the blame for the cuts on rivals like U.S.-based video streaming services, which he charged are causing the downfall of Canadian broadcasting. He says these players have been given 'free rein' by the government and its regulators, while Canadian broadcasters have been forced to meet onerous licensing requirements that have restricted their operations. Péladeau called on the government and its regulators to address the situation, which he says would protect Canadian jobs and businesses. He also complained about how stations like his are in direct competition with the government-funded CBC, how cash his company received from the Canada Media Fund has declined significantly and how Bell has refused to pay what he sees as fair market prices for TVA specialty channels. This report by The Canadian Press was first published May 21, 2025. Companies in this story: (TSX:QBR.B) The Canadian Press
Winnipeg Free Press
21-05-2025
- Business
- Winnipeg Free Press
TVA Group cuts 30 jobs in TV division as CEO lobs blame at rivals, regulators
MONTREAL – TVA Group says it is cutting about 30 jobs as a slew of pressures from competitors and a lack of federal government and regulator support challenge the business. The Quebecor Media subsidiary says the cuts mainly hit its television division, which saw two overhauls in recent years that halved the company's workforce. TVA Group acting president and CEO Pierre Karl Péladeau placed some of the blame for the cuts on rivals like U.S.-based video streaming services, which he charged are causing the downfall of Canadian broadcasting. He says these players have been given 'free rein' by the government and its regulators, while Canadian broadcasters have been forced to meet onerous licensing requirements that have restricted their operations. Péladeau called on the government and its regulators to address the situation, which he says would protect Canadian jobs and businesses. He also complained about how stations like his are in direct competition with the government-funded CBC, how cash his company received from the Canada Media Fund has declined significantly and how Bell has refused to pay what he sees as fair market prices for TVA specialty channels. Weekly A weekly look at what's happening in Winnipeg's arts and entertainment scene. This report by The Canadian Press was first published May 21, 2025. Companies in this story: (TSX:QBR.B)
