Canada Jetlines has officially announced that it has filed a notice of intention to make a proposal under Canada’s Bankruptcy and Insolvency Act (BIA).
According to a 21AUG press release, BDO Canada has been appointed as the proposal trustee on behalf of the airline, which ceased operations last week.
The notice of intention is the initial step in the restructuring process under the BIA, enabling the Company to commence restructuring.
When the Notice of Intention is filed, creditors and others stop taking legal action against the Company or its assets.
The board of directors has dissolved and the four aircraft are parked. However, under the insolvency act, shareholders now have thirty days to raise capital.
There's no guarantee that this process will lead to a transaction, or if it does, that it will be completed successfully and on time.
Open Jaw obtained the official Notice of Intention with BDO, which details the names of known creditors. The 17-page list totals CAD $11,800, 538.
Canada Jetlines on 15AUG stated it temporarily ceased airline operations, seeking creditor protection.
The company shut down after its CEO and three other executives resigned. Canada Jetlines, based in Mississauga, Ontario, started flying in September 2022, offering flights within Canada and to the U.S., Caribbean, and Mexico. They also provided charter flights and leased their planes to other airlines during the summer.
The Canadian Press reported that Jetlines spokesperson Erica Dymond shared: "The Company had pursued all available financing alternatives, including strategic transactions and equity and debt financings.
"Unfortunately despite these efforts, the company has been unable to obtain the financing required to continue operations at this time."
Aviation expert John Gradek told CBC News that the airline had been on the edge for months.
Canada Jetlines is Canada's latest airline casualty. In February, Lynx Airlines abandoned its quest to become a low-cost Canadian airline, and WestJet shut down its low-cost airline, Swoop, in June 2023.
