HK tycoon Li confirms bid to rescue Air Canada
( 2003-11-10 14:31) (Agencies)
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| Victor Li, eldest son of Hong Kong tycoon
Li Ka-shing [AFP/File] | Insolvent carrier Air Canada has selected a group
led by Hong Kong tycoon Victor Li to invest 485 million US dollars in a deal
that would wipe out existing shareholders value.
Under the restructuring deal, creditors would seize about 56 per cent of the
equity while Li would receive some 31 per cent while shareholders would only be
entitled to 0.1 per cent.
Air Canada is about 10 billion US dollars in debt. The deal remains subject
to approval from an court in Ontario.
Li, a naturalized Canadian born and the son of Asia's wealthiest businessman
Li Ka-shing, said in September he was making the bid to bail out the carrier in
a personal capacity.
The equity placement is seeking to help the carrier emerge from bankruptcy by
the end of the year.
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