ACE Aviation reports full year results and provides an update on its liquidation process
MONTREAL, April 30, 2013 /CNW Telbec/ – ACE Aviation Holdings Inc. (ACE)
today reported full year results for 2012, and provided an update with
respect to its liquidation process.
2012 Annual Results
For 2012, ACE recorded a reduction in net assets in liquidation of $250
million. This reduction was primarily due to the distribution to
shareholders of $275 million which was paid in the second quarter of
2012. The distribution was partly offset by an increase in the market
value of ACE’s investment in Air Canada prior to its disposition on
November 13, 2012 for net proceeds of $58 million.
As at April 29, 2013, ACE’s only remaining assets consist of cash and
short-term investments in an aggregate amount of approximately $132
In March 2010, ACE applied for Certificates of Discharge from the Canada
Revenue Agency (“CRA“) and Revenu Quebec. On March 7, 2012, a tax clearance certificate was
issued by the CRA in connection with all taxation years ended on or
prior to December 31, 2010. On March 12, 2012, Revenu QuÃ©bec issued an
ACE has agreed to indemnify and hold harmless Air Canada and Aveos from
loss should Input Tax Credit claims by Air Canada and Aveos amounting
to $40 million and $1 million respectively, be reassessed in the
future. These agreements follow related tax reassessments received and
paid by ACE as part of the tax audits referred to above.
On June 28, 2012, further to the approval by ACE shareholders on April
25, 2012 of a special resolution providing for the voluntary
liquidation of ACE, the Superior Court of QuÃ©bec (Commercial Division)
(the “Court“) issued an order appointing Ernst & Young Inc. as liquidator of ACE
Pursuant to an order issued by the Court on February 25, 2013, the
Liquidator established a process for the identification, resolution and
barring of claims and other contingent liabilities against ACE.
Creditors have until May 13, 2013 to file their proof of claims,
failing which their claims will be barred and extinguished. A copy of
the Court order is available on the Liquidator’s website at www.ey.com/ca/aceaviation.
Following the completion of such process, the review of any claims and
the provision for or settlement of any contingencies, the Liquidator
will proceed with the distribution of ACE’s remaining net cash to its
shareholders. The final distribution to shareholders and the
cancellation of the shares of ACE will not occur until all remaining
contingent liabilities are settled or otherwise provided for.
As previously announced, effective as of June 28, 2012, all of the
directors and officers of ACE resigned from their positions and the
Liquidator was vested with the powers of the directors and the
shareholders of ACE in accordance with the Canada Business Corporations
Act and the Court order issued on June 28, 2012. Accordingly, ACE
obtained an order from the Court on April 19, 2013 confirming that no
annual shareholder meeting will be held in 2013 with respect to the
financial year ended December 31, 2012. Shareholders who have questions
or require additional information with respect to ACE and the
liquidation process may contact the Liquidator by telephone
(1-855-279-8388 or 416-943-4444) or by fax (1-416-943-3300).
For additional information with respect to the liquidation of ACE, refer
to the management proxy circular dated March 9, 2012 and the other
public filings of ACE which are available at www.sedar.com and www.aceaviation.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain forward-looking
statements. Forward-looking statements may relate to analyses and other
information that are based on forecasts of future results and estimates
of amounts not yet determinable. These statements may involve, but are
not limited to, comments relating to strategies, expectations, planned
operations, future actions, the timing of the liquidation, the final
distribution to shareholders and the cancellation of the shares of ACE.
These forward-looking statements are identified by the use of terms and
phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and
similar terms and phrases, including references to assumptions.
Forward-looking statements, by their nature, are based on assumptions
and are subject to important risks and uncertainties. Any forecasts or
forward-looking predictions or statements cannot be relied upon due to,
amongst other things, changing external events and general
uncertainties of the business. Actual results may differ materially
from results indicated in forward-looking statements due to a number of
factors, including without limitation, market, regulatory developments
or proceedings, and actions by third parties as well as the factors
identified throughout ACE’s filings with securities regulators in
Canada and, in particular, those identified in the Risk Factors section
of ACE’s 2012 Annual MD&A dated April 29, 2013. If ACE does not proceed
with the winding-up in a timely manner, ACE will continue to incur
operating costs and fees. The forward-looking statements contained in
this news release represent ACE’s expectations as of the date they are
made, and are subject to change after such date. However, ACE disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as required under applicable securities regulations.
SOURCE ACE AVIATION HOLDINGS INC.