HK tycoon Li confirms bid to rescue Air Canada

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Last updated at: (Beijing Time) Monday, November 10, 2003

HK tycoon Li confirms bid to rescue Air Canada

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.

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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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