MONTRÉAL, Aug. 29, 2016 /CNW
Telbec/ - ACE Aviation Holdings Inc. (ACE) announced today its
results for the second quarter of 2016.
2016 Second Quarter Results
In the second quarter of 2016, ACE recorded a decrease in net
assets in liquidation of approximately $12.2
million as a result of the distribution to the shareholders
of ACE in the aggregate amount of $12
million which was paid on June 22,
2016, and as a result of administrative and other expenses
incurred during the quarter, offset by interest income earned
during the quarter.
As at June 30, 2016, ACE's only
remaining assets consist of cash in an aggregate amount of
approximately $6.8 million.
Liquidation Process
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 Québec (Commercial
Division) (the "Court") issued an order appointing Ernst
& Young Inc. as liquidator of ACE (the
"Liquidator").
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 had until
May 13, 2013 to file their proof of
claims, failing which their claims would be barred and
extinguished. The interim consolidated financial statements of ACE
for the second quarter ended June 30,
2016 and the related management's discussion and analysis
include a description of proofs of claim which were filed and the
status thereof. All of the remaining contingent obligations which
were the object of proofs of claims filed in connection with such
claims process have expired at the beginning of 2016.
Given the results of the claims process and the expiry of all of
the remaining contingent obligations covered by proofs of claims
filed in connection with such process, the Liquidator announced on
April 29, 2016 that it intended to
seek Court approval for a distribution to shareholders of ACE in
the aggregate amount of $12 million
or approximately $0.36 per common
share of ACE. The Court approved such distribution at a hearing
held on June 1, 2016. The record date
to determine shareholders entitled to receive the distribution was
June 14, 2016 and the payment date
for the distribution was June 22,
2016.
Liquidation and Dissolution Process and Final Distribution to
Shareholders
Following the interim distribution to shareholders of
$12 million completed in June 2016, ACE's only remaining assets as at
June 30, 2016 consist of cash in an
aggregate amount of approximately $6.8
million.
ACE is completing the remaining corporate, administrative and
tax processes to facilitate its dissolution and the final
distribution of the remaining cash of ACE prior to its dissolution.
ACE currently expects that such final distribution and dissolution
will occur in the first half of 2017.
The final distribution to shareholders, the cancellation of the
shares of ACE and the dissolution of ACE will not occur until all
necessary corporate, administrative and tax measures to dissolve
ACE are completed and until the settlement of any remaining
contingencies that may arise in connection with the remaining
liquidation and dissolution steps of ACE. There is no certainty as
to the timing or amount of such final distribution and
dissolution.
The distributions to shareholders of ACE will generally be
treated as deemed dividends from a Canadian tax standpoint. Such
deemed dividends will be designated as eligible dividends for the
purposes of the Income Tax Act (Canada).
For additional information with respect to the liquidation of
ACE, refer to the management proxy circular dated March 9, 2012, the interim consolidated financial
statements and related management's discussion and analysis for the
second quarter ended June 30, 2016
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, future actions, the timing of the
liquidation, the final distribution to shareholders, the
cancellation of the shares of ACE and the dissolution 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 2015 Annual MD&A dated
April 29, 2016. ACE will continue to
incur operating costs and fees for the duration of the winding-up
process. 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.
Internet: www.aceaviation.com
SOURCE ACE Aviation Holdings Inc.