In early 2007, Canada Post was debt free and had a maximum availability of $300 million in external borrowing. In 2010, Canada Post had a $3.2 billion pension shortfall along with a potential debt load of $3.9 billion dollars in external borrowing – a startling change.
Canada Post has went from debt-free four years ago, to a potential $7.1 billion in debt, or if the funds not fully utilized, around $5 billion. Canada Post may not have borrowed all this money or perhaps used some of this capital to pay-off the pension which may make it less than $7.1 billion.
Continue reading “Canada Post’s Rising Debt Load”