Transat A.T. Inc. has scheduled a shareholder meeting for March 10 to vote on proposed changes by Pierre Karl Péladeau, the CEO of Quebecor Inc. Péladeau, the company’s second-largest shareholder, has called for a board overhaul and other transformations.
In response to Péladeau’s request, Transat is convening this meeting alongside its regular annual business proceedings. The company emphasized its dedication to sound governance and shareholder protection in a recent statement.
Péladeau had initially sought a meeting by Feb. 6, but Transat cited the challenge of managing two shareholder meetings in quick succession addressing similar matters. Holding the meeting before March 10 would also strain the company’s resources due to the compressed timeline.
Péladeau advocates reducing the board to six directors, including three new members, down from the current 11. He is also pushing for a restructuring of Transat’s balance sheet and a strategic review to address what he calls a “broken” financial situation.
Financière Outremont Inc., Péladeau’s investment firm, owns 9.5% of Transat. The company recently averted a potential work stoppage by reaching a tentative contract with its pilots, which includes a substantial wage increase over five years.
Amid tough competition and substantial debt, Transat has faced challenges, including grounding planes due to engine recalls. However, the company has taken steps to restructure its debt, forgiving significant amounts owed during the pandemic.
