Canada Enterprise Emergency Funding Corporation

Following the announcement on June 5, 2025, that an agreement in principle was reached between CEEFC and Transat for the restructuring of Transat’s LEEFF debt incurred in connection with the COVID-19 pandemic, CEEFC is pleased to confirm the finalization of definitive agreements that allows the successful completion of the transaction.

As per this agreement, the outstanding debt with CEEFC is reduced to $334 million from $772 million. This transaction will substantially deleverage Transat’s balance sheet and provide flexibility for the company to further implement its long-term sustainable strategic plan. The agreement also includes the repayment to CEEFC of $41.4 million in cash and issuance of $16.3 million of preferred shares, convertible into Class B Voting Shares representing 19.9% of the issued and outstanding voting shares. The approval of the Toronto Stock Exchange was obtained with respect to the issuance of the Preferred Shares.

This restructuring with Transat represents the best recovery for CEEFC given the circumstances. It is the result of 18 months of negotiations, including the review of a range of alternatives. CEEFC operates at arm’s length from the government and in a commercial manner, in the best interests of Canadians, continuously monitoring its portfolio and working with borrowers to ensure that the objectives of the program are met.

Since the inception of the program, $5.3 billion in loan commitments have been repaid, cancelled, or expired.

“CEEFC has worked closely with Transat to ensure it meets its obligations under the LEEFF program while supporting the company’s continued commercial viability in a competitive market,” says Elizabeth Wademan, President and CEO of Canada Development Investment Corporation (CDEV), the parent company of CEEFC. “LEEFF has been a successful program by making emergency loans available to Canada’s large employers to enable them to stay solvent and save jobs both during the pandemic and beyond.