Canada's largest airline Air Canada was given four more months by a bankruptcy court to complete its restructuring on Friday.

Ontario Superior Court Justice James Farley extended the airline's bankruptcy protection from creditors, which was to expire Friday, until September 30.

Friday's extension of the airline's protection under the Companies' Creditors Arrangement Act followed an 11-hour deal between Air Canada chief executive officer Robert Milton and labor unions on Thursday night, enabling the airline to complete cost- cutting accords with its unions and hold on to two key financial backers.

The German Deutsche Bank is to underwrite an equity of US$650 million to the airline's creditors, while GE Capital Aviation Services, a US firm, is to provide 1.5 billion US in financing and restructure leases on more than 100 aircraft.

Air Canada is still looking for about 250 million Canadian dollars (about US$185 million) in equity investment in exchange for a 12-percent minority share in the airline. The creditors will own up to 85 percent when restructuring is completed.