Transat AT Inc T.TRZ

Interesting!

[givemeabreak1]

Surprisingly, the price of the shares seems to be holding up well considering they seem to hold no value.   As I recall book value was about $1.76 but book value is a trailing number which means book value today is likely 0, Nada, Diddly.  It appears shareholders are holding tight to the belief of that $5.00 buy out!  I am not so sure!  I can't see the gov giving them a $500 million loan as it would be extremely high risk though I suspect the Quebec Gov will be pulling the but were Quebec card.  

Just not sure they can continue without creditor protection.  For the good of the Canadian consumer and taxpayer it seems to make more sense.  The feds should let them go to creditor protection and refuse recapitalization it will result in a stronger competetor for AC and West Jet!

[lb1temporary]

Gvmnt could not have such strategy, they will give them a bailout.  But the interesting thing will be the conditions attached to it. Sabia surprised everyone with his conditions in the AC file. The Market have tough that AC had the upper end in the negociation!  Mistake. WE know the result; AC had what they need but with a dilution at discount, reasonnable rates for both of them

[givemeabreak1]

The difference is that Transat has no book value!    Point being just because they go into creditor protection does not mean they disappear.  In fact they with the assistance of the government reappear stronger and more competetive.  The losers of course are debt holders and shareholders.  The winners are the taxpayer and flying public.  Seems to me it is the smart

[lb1temporary]

I understand that its financial position is weak and I agree that a good credit officer will let it fall. But bailots are not done by banks but by gvnmnts. The purpose of bailouts is exactly to save corporations from bankruptsy.  We are in special times; the role of the gvrnmts is usually to stay away from corporations help but, agreeing or not, that's not the question here, gvrmnt

[givemeabreak1]

1b1 You are confusing the term bankruptsy as it can mean different things!  That said, I will not use US vs Canadian terms as they are different but I have been through a corporate restructuring often call bankrupsty twice!  There is a point where a business is no longer salvageable and goes into a bankrupsty liquidation.  In other words all there assets are sold and whatever money

[lb1temporary]

Thanks for the Finance 101 lesson. The purpose of bailouts is exactly to save corporations from bankruptsy But I used the word ''bankruptcy'' in general, not technically , meaning serious financial problems.  Anyway, your creditor protection proposition could not succeed, the creditors position was only at 203 M$ at Jan 31,2021 and decreasing quarter after quarter with