On August 9, 2004, the Government of Canada adopted the Air Canada Pension Plan Solvency Deficiency Funding Regulations, which will allow Air Canada to amortize the solvency deficiencies in its ten defined benefit registered pension plans over ten years by way of variable annual payments rather than over five years by way of equal annual payments, as required under the regulations ordinarily applicable to federally-registered pension plans. They came into force on September 30, 2004. The new Regulations are based on a term sheet which was agreed to by Air Canada, each of its labour unions and representatives of its retirees and non-unionized active employees on February 18, 2004, and on a protocol which was signed by Air Canada and the federal pension regulator, the Office of the Superintendent of Financial Institutions (OSFI), on May 14, 2004. Together, the term sheet, protocol, and Regulations provide a mechanism for Air Canada to pay down the aggregate $1.2 billion solvency deficit in its pension plans in a manner consistent with the business and financial requirements of the restructuring it began under the Companies’ Creditors Arrangements Act on April 1, 2003, while preserving all existing pension plans and benefits. Stonecrest Capital Inc., who acted as collateral agent in respect of the ongoing arrangements, was represented by Borden Ladner Gervais, with a team led by Joanne Foot, and including Howard Silverman, Carlyn Klebuc and Shane Pearlman.