Air Canada today had a 10% drop in shares value this morning when trading opened, with fears rising that the Canadian air carrier may be preparing to file for bankruptcy protection from creditors.

Air Canada B stock dropped a massive 10.4% to $1.03 early this morning. That is a loss of 12 cents on more then 35,000 shares.

Last Monday Montie Brewer, the former president and chief executive of Air Canada, resigned. Naming Calin Rovinescu, a former executive which played a key role in the restructure in 2003-2004. It is believed that the company is going to restructured once again.

Calin Rovinescu, who will become the chief executive on Wednesday, will have to deal with the company’s $660 million debts, mounting pension liabilities and other cash problems.

"Calin's reputation as a proven leader and his wealth of experience in corporate strategy will serve Air Canada well during this particularly challenging period for the world's airline industry," Air Canada chairman David Richardson said in a statement late Monday.

Last month, Air Canada reported a net loss of $1.03 billion or $10.25 per diluted share for 2008 compared with a profit of $429 million or $4.27 per diluted share in 2007. Operating revenue totaled $11.08 billion for 2008, up from $10.65 billion.