Air Canada filed a motion on 25 November with the Ontario Superior Court asking for approval of its deal with Trinity Time Investments. Under the deal, Trinity has agreed to buy 31% of Air Canada's shares for C$650 million ($496 million).

The motion comes after Cerberus Capital management of New York, which was passed over in favour of Trinity, made a new offer on 22 November that would give creditors the right to buy up to C$850 million worth of the airline's shares.

Air Canada's court-appointed monitor Ernst & Young says the airline is not allowed to negotiate with Cerberus under its agreement with Trinity. But creditors say they will urge the court to consider the more lucrative offer from Cerberus. Trinity can back out of its deal if it does not receive court approval by 20 December.

Meanwhile, in an affidavit filed with the Ontario Superior Court, Air Canada says it needs about C$4 billion to renew its fleet. The C$4 billion is on top of the C$1.3 billion in equity and debt funding the airline says it needs to emerge from bankruptcy protection.

Source: Flight International