As part of the reorganization of Air Canada and its affiliates, Teamsters Canada, on behalf of its members, was entitled to receive a set number of shares in the new holding corporation. Teamsters Canada also had the option to subscribe for more shares of the same corporation; the exact number of shares was limited and had to be determined by using a mathematical formula.
Teamsters Canada negotiated a contract of sale with a bank who agreed to buy all the shares for a total payment of 15% of the proven claim. Payment to Teamsters Canada will be made upon actual delivery of the shares, only then.
The issuance of the shares has been interrupted by the need to obtain a release from the Canada Revenue Agency and Revenue Quebec. We retained the services of a lawyer specialized in tax law to obtain that release. Negotiations are currently under way with both agencies. We expect that the final agreement will include the obligation to hold part of the money, received from the sale from the shares, in escrow for remittance to the tax agencies. The holdback would be calculated on an average of the applicable tax. The payment will be include on the 2004 tax forms.
Meanwhile we are presently working on calculating each and every member’s entitlement. Not everyone will receive the same amount depending on the grievances included in the proof of claims filed with the monitor to the reorganization.
Rest assured that the money will be paid as soon as we can.