Orders in Council Database

Under the authority of the Loan and Guarantee Act, 1957, and upon the Stephenville Airport Corporation proceeding with the filing of bankruptcy protection under the Bankruptcy and Insolvency Act, the Lieutenant Governor in Council hereby authorizes the Minister of Finance to provide a loan guarantee to a maximum of $350,000 to secure a bank operating line of credit for the Stephenville Airport Corporation.  The guarantee is to be subject to such terms and conditions as are acceptable to the Departments of Finance and Justice, and, subject to the provisions of the Bankruptcy and Insolvency Act, shall be secured by an assignment of receivables of the Stephenville Airport Corporation.  Such financial assistance shall be contingent upon an aggressive restructuring plan being undertaken by a Trustee on behalf of the Stephenville Airport Corporation, which includes:               

i)  Undertaking emergency union negotiations, which are to be completed within two weeks of the commencement of bankruptcy protection;

ii)  Securing immediate credit for the fuel supplier to maintain operations;

iii)  Restructuring/settlement of outstanding payables with secured and unsecured creditors including smaller, local unsecured creditors;

iv)  Confirming the intentions of Provincial Airlines, NavCan, Transport Canada and the Safety and Emergency Response Training Program of the Marine Institute with respect to existing agreements; and

v)  Taking steps to improve financial management and accounting controls.