The Canada Enterprise Emergency Funding Corp. (CEEFC) has announced a new loan under the Large Employer Emergency Financing Facility (LEEFF), giving Sunwing Vacations Inc. and Sunwing Airlines Inc. access to $375 million of liquidity to protect jobs in Canada's airline sector.
Sunwing Airlines and Sunwing Vacations together provide almost 3,000 Canadians with full-time jobs.
Sunwing has agreed to maintain an account with money received from customers for travel that was cancelled due to the COVID-19 pandemic.
This account will be maintained until the government's broader discussions with the airline industry conclude and a policy is established for the treatment of these prepaid amounts.
LEEFF loans provide bridge financing to Canada's largest employers whose needs during the pandemic are not being met through private market financing. It provides large Canadian employers with access to credit to preserve jobs and continue operations during this challenging period.
Companies must agree to sustain their domestic operations, make reasonable commercial efforts to minimize the loss of jobs, and demonstrate a clear plan to return to financial stability.
They must also agree to place restrictions on executive compensation, dividends, and share buybacks.
Other applications for LEEFF financing are currently under consideration.
CEEFC maintains an updated list of approved LEEFF loans, which can be found here.
Key terms of the LEEFF loan facility can be found here.
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