Transat Fights Back After Shareholder Péladeau Seeks to Suspend Debt Agreement

Six years after proposing to buy Transat A.T., prominent Quebec businessman Pierre Karl Péladeau is asking the courts to suspend the agreement that recently allowed the travel company to restructure its heavy debt.

Péladeau is one of the tour operator’s shareholders and had unsuccessfully attempted to acquire it six years ago. He accuses the company of not providing any official communication to its shareholders so that they could be aware of the agreement, “in violation of their rights and the company’s obligations.”

If the agreement goes ahead, Péladeau says, there will be a “transfer of control” of Transat “to the federal government,” which is already its main creditor.

“It is unfair and unjustified for the company to dilute its shareholders’ equity without their approval as part of a restructuring operation that ultimately does not ensure the company’s sustainability,” Péladeau argues in a statement.

According to the agreement announced earlier this month, Transat’s debt to the Canada Enterprise Emergency Financing Corporation (CEEFC) has been reduced from $772 million to $334 million. Ottawa loaned the money to Transat during the pandemic to ensure its survival.

Through his company La Financière Outremont, Péladeau holds approximately 3.8 million shares, or about 9.5% of the Montreal-based company’s shares. This makes him Transat’s third-largest shareholder.

In response to Péladeau’s request for an injunction, Transat released a statement praising the benefits of the agreement and denying that the federal government would have any control over the company.

“At no time will the exercise of Warrants or conversion of Preferred Shares result in CEEFC beneficially owning more than 19.9% of the common shares, and therefore, CEEFC will not exert control over the Corporation,” the statement read.

Transat added: “Since the announcement of the agreement in principle, the Corporation’s share price has increased from $1.64 at market close on June 4, 2025, to $2.83 at market close on June 27, 2025, representing a 72% increase.”Transat says the allegations made by Financière Outremont are unfounded and that it “intends to contest them vigorously and seek dismissal of the Injunction Application.” Transat adds that the application does not affect its operations.