Just days after ordering a halt to its operations, Canada Jetlines (CBOE: CJET) has announced that it has made a filing under the Bankruptcy and Insolvency Act in Canada.
The formal filing, referred to as a Notice of Intention to Make a Proposal, saw the appointment of BDO Canada as a proposal trustee, whom is expected to assist in the restructuring of the company. In connection with the filing, a stay of proceedings has been imposed on the company, which protects it from claims and enforcement proceedings by creditors.
The initial stay period is for 30 days.
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The filing under the Bankruptcy and Insolvency Act follows the company last week seeing the departure of a number of directors and executives, including CEO Brigitte Goersch. At the time of their departure, no formal reason for the exits was provided, however the company indicated that it had failed to secure further financing to support the operations.
READ: Sudden Shutdown: What Canada Jetlines’ Demise Reveals About the Airline Industry
Two days later, the company formally halted operations, suggesting those that had purchased tickets for upcoming flights should make arrangements with their credit card providers to obtain a refund.
Trading in company’s common shares has been halted by the CBOE as a result of the filing.
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