09/02/2015 07:18 EDT | Updated 09/02/2016 01:12 EDT

Pascan Aviation files for creditor protection

Pascan Aviation, a regional airline that served communities such as Bathurst, has filed for creditor protection.

Pascan Aviation says it will honour reservations and tickets as it restructures its business in parts of Quebec and Atlantic Canada.

It says the Business Development Bank of Canada and Investissement Quebec are providing a total of $1 million in financial support while Pascan operates under the Companies' Creditors Arrangement Act.

"The CCAA proceedings will, among other things, provide the Pascan companies with the time and stability to restructure its business, negotiate a restructuring plan with stakeholders, compromise creditor claims, restructure material operating contracts, secure new financing, and otherwise consider restructuring and refinancing options," the company said in a statement.

Pascan provides service with several small turboprop aircraft to the Bathurst airport as well as airports in Happy Valley-Goose Bay, Wabush, Ottawa and a number in Quebec.