Air Canada has reached an agreement for a C$250 million ($184 million) investment from an affiliate of Cerberus Capital Management only months after it rejected the advances of the New York vulture fund. Combined with other committed financing, the agreement will give the insolvent flag carrier access to more than C$2.9 billion in capital if it emerges from bankruptcy protection in September. Under the terms of the deal, Cerberus ACE Investment will receive convertible preferred stock. Initially, the shares would give Cerberus 9.2% ownership of the airline.
Source: Flight International