Air Canada May Be Headed For Bankruptcy

Law360, New York (February 17, 2009, 12:00 AM EST) -- Air Canada may soon be forced to file for bankruptcy if it fails to secure additional financing or renegotiate covenants in credit card agreements, UBS AG analyst Fadi Chamoun said in a research note.

The analyst’s report, released Friday, said Canada’s largest domestic airline could fall far short of needed cash if it does not sell additional assets.

While the airline industry is no longer facing the dramatic spikes in fuel costs it was forced to handle last year, Chamoun wrote that cash from the airline’s...
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