MONTREAL — Transat A.T. Inc. says it has gained some financial flexibility by extending the termination date of its $250-million short-term loan facility by three months while it awaits a European regulatory ruling on the proposed takeover by Air Canada.

Transat says the facility had been arranged on Oct. 10, with Export Development Canada and National Bank of Canada as lead arranger.

The loan facility will terminate at the earliest date between June 30 and the closing of the arrangement with Air Canada.

It may still be “drawn in tranches” at any time before May 31, subject to meeting the relevant prior conditions and applicable borrowing conditions.

Those conditions have not been amended and include certain requirements regarding freely available cash before and after drawing on the facility.

Montreal-based Transat says the extension provides it with additional room to manoeuvre to secure financing with the decision from the European Commission expected by the end of June.

The $190-million acquisition by Air Canada that was approved by the federal government remains up in the air as the acquisition was set to be completed by Feb. 15.