The move comes after a failed attempt by the airline to reach a cost-cutting deal with the country’s unions, after the Canadian government had originally agreed to loan Canada 3000 Pounds 32.3m providing the low-cost airline cut costs and found fresh investment.
Yesterday, transport minister David Collenette said Canada 3000 could still receive the money if the provisions were met.
Canada 3000 and the country’s biggest carrier Air Canada applied to the government for loans after a sharp downturn in the airline business in the wake of the September 11 attacks.
Bankruptcy protection will enable the company to continue its operations while it restructures.
The airline, which began operations in 1988 as a charter airline, carried more than five million passengers a year, employed 4,400 employees and managed a fleet of more than 40 aircrafts.
Thousands of passengers have been left stranded at airports as a result of the collapse.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children