LEEFF loan to Porter Airlines protects jobs in Canada

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TORONTO, June 30, 2021 / CNW / – Enterprise Emergency Finance Corporation of Canada (CEEFC) today announced a new loan for the Large Employers Emergency Funding Program (LEEFF). The agreement will provide Porter Airlines with a repayment loan to resume operations and support jobs in Canadian the airline sector.

Porter will receive loan financing in the amount of $ 250 million via LEEFF. As a condition of the loan, Porter agreed to provide refunds for the cancellation of certain flights related to the pandemic to eligible customers. Additional $ 20 million funding will be provided to Porter for this purpose. Customers will be able to request a refund via August 29, 2021

As part of this agreement, Porter is committed to keeping jobs and complying with collective bargaining agreements and retirement benefits. Porter also agreed to impose restrictions on executive compensation, dividends and share repurchases.

LEEFF loans provide bridge financing for Canada’s largest employers who are not being met by private market funding during the pandemic. The program provides major Canadian employers with access to credit to keep jobs and continue working during recovery.

Other applications for LEEFF funding are currently pending. Safeguarding the financial interests of taxpayers requires careful scrutiny and cooperation of existing creditors.

Fast facts

  • LEEFF is open to all major commercial Canadian employers that have a significant impact on the Canadian economy and provide millions of jobs for Canadians. Financial sector companies are not eligible for LEEFF. To qualify for LEEFF, a company must have an annual income of over $ 300 million and require a loan of at least $ 60 million. Certain non-profit businesses, such as airports, may also be eligible. Any company found guilty of tax evasion is not eligible.

  • Companies receiving funding through LEEFF are required to publish annual climate-related disclosures in accordance with the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures, including information on how their future operations will support environmental sustainability and national climate targets.

  • Companies must agree to maintain their internal operations, make reasonable business efforts to minimize job losses, and demonstrate a clear plan to return to financial stability.

  • Key LEEFF terms can be found at https://www.ceefc-cfuec.ca/leeff-factsheet/

  • A list of approved LEEFF funding can be found at https://www.ceefc-cfuec.ca/approved-loans/

SOURCE Emergency Enterprise Finance Corporation of Canada

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View original content: http://www.newswire.ca/en/releases/archive/June2021/30/c3487.html

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