Newspaper article The Canadian Press

Aimia Suddenly Suspends Dividends Following Air Canada's Decision to Cut Ties

Newspaper article The Canadian Press

Aimia Suddenly Suspends Dividends Following Air Canada's Decision to Cut Ties

Article excerpt

Aimia suddenly suspends dividends

--

MONTREAL - Aimia Inc. (TSX:AIM) is immediately suspending all dividends on common and preferred shares, including previously declared payments that were to be made at the end of this month.

The Montreal-based company runs Aeroplan and other customer reward programs for various businesses including Air Canada (TSX:AC), its original customer.

Aimia says the dividend suspension is required following Air Canada's decision to stop using Aeroplan and launch its own customer reward program in 2020.

That announcement sparked a major decline for Aimia shares, which closed at $1.89 on Tuesday, worth less than one-quarter what they were worth prior to May 10.

Aimia says a capital impairment test required by the Canada Business Corporations Act prevents it from paying the dividends, even though it has the liquidity to do so. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.