FlightHub Group successfully emerges from CCAA restructuring process and readies for travel market recovery
MONTREAL, May 19, 2021 /CNW/ - The FlightHub Group, owner and operator of FlightHub.com and justfly.com, two of the world's leading online travel agencies (OTAs), is proud to announce that it has successfully completed its Companies' Creditors Arrangement Act (CCAA) restructuring process, which was officially terminated by order of the Superior Court on May 14, 2021. The company has now shifted its focus towards preparing for the next wave of growth that will be fueled by the pent-up travel demand, accumulated over the last 12+ months.
The COVID-19 pandemic triggered a chain of unprecedented events around the globe that brought the travel industry to a near halt. FlightHub and justfly were greatly affected by a sharp decline in sales, as well as a significant strain on cash flow caused by COVID-19 related cancellations and refunds from previous sales. The company initiated CCAA restructuring proceedings in May 2020 and concurrent recognition proceedings under Chapter 15 US Bankruptcy Code. "We leveraged the CCAA restructuring process to rapidly scale down our operations and adapt to a new business reality", says Marc Ghobriel, Chief Financial & Strategy Officer at the company.
In addition to preserving qualified jobs and the company's head office in Montreal, the restructuring of the FlightHub Group has successfully resolved its regulatory issues and re-positioned the company for rapid growth when air travel resumes post-pandemic.
The company implemented a plan of arrangement on April 30, 2021, which was accepted by 100% of creditors in number and value. "It is important to recognize and thank all of our partners, who have supported and worked collaboratively with us over the past year to ensure continuous operations", adds Mr. Ghobriel. "Our team worked tirelessly throughout the process with all stakeholders to continue servicing existing customers and enable customers to reserve new travel plans."
"Turning the page to FlightHub's new chapter comes at an exciting time as we start to see signs of life in domestic travel markets", says Christopher Cave, Chief Executive Officer at FlightHub Group. "With vaccination rates increasing throughout the world, international travel markets will eventually unlock further growth".
The company has dedicated significant resources and effort towards rebuilding a stronger foundation in order to provide great travel options and a better post-booking experience to its customers. "We remain optimistic about the future and believe that the FlightHub Group will emerge as Canada's top travel company, while adding high-quality jobs in Canada as travel resumes in the coming months", says Mr. Cave.
About FlightHub Group
FlightHub and Justfly are among the world's leading online travel agencies. They make travel accessible, allowing more people to visit new places and explore different cultures by offering the cheapest flight on worldwide destinations. This is achieved by investing heavily in both technology and people, streamlining and optimizing the customer experience. Visit flighthub.com or justfly.com to book online.
FlightHub was represented by Stikeman Elliott LLP throughout the CCAA process. For additional information, please visit the website of the process Monitor, MNP LTD:
https://mnpdebt.ca/en/corporate/corporate-engagements/flighthub-group/
SOURCE FlightHub
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