Air Canada said on Friday a Canadian court approved a $2 billion financial rescue plan that would clear the way for it to emerge from bankruptcy protection as soon as possible.
Air Canada, the largest airline in Canada and the world's No. 11 carrier, said the Ontario Superior Court approved an agreement with Trinity Time Investments in which the company, controlled by Hong-Kong-based Canadian businessman Victor Li, would invest C$650 million ($500 million) in the insolvent airline for a 31 percent controlling stake.
The court also approved $1.5 billion of financing from Air Canada's biggest aircraft lessor, General Electric Capital Aviation Services, or GECAS.
"With these approvals, the key process of selecting an equity plan sponsor has now been completed," Calin Rovinescu, chief restructuring officer at the Montreal-based airline, said.
Rovinescu said Air Canada expects to "proceed expeditiously" to complete the steps taking it out of bankruptcy protection.
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