MONTRÉAL, Nov. 29, 2017 /CNW
Telbec/ - ACE Aviation Holdings Inc. (ACE) announced today its
results for the third quarter of 2017, provided an update with
respect to its liquidation process and announced its intention to
seek Court approval for a final distribution to its shareholders
and its dissolution.
2017 Third Quarter Results
In the third quarter of 2017, ACE recorded an increase in net
assets in liquidation of approximately $20,000 as a result of interest income earned
during the quarter.
As at September 30, 2017, ACE's
only remaining assets consisted of cash in an aggregate amount of
approximately $6.5 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 third quarter ended September 30,
2017 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.
Tax Refunds
As indicated in its audited annual financial statements for the
year ended December 31, 2016 and
subsequent interim financial statements, ACE had claimed a refund
from the Canada Revenue Agency ("CRA") and Revenu Québec
further to the expiration of a statute of limitation for
reassessment of the income of an operating partnership in which ACE
previously had an interest. The Liquidator had indicated in such
financial statements that it would not dissolve until it had
collected or otherwise settled such refund.
In October 2017, the Liquidator
received aggregate refunds in the amount of approximately
$483,000 from the CRA and Revenu
Québec.
Final Distribution to Shareholders and Dissolution
The Liquidator intends to seek Court approval of its final
accounts, approval to proceed with a final distribution to the
shareholders of ACE and approval of the dissolution of ACE. An
estimate of the final amount to be distributed will be provided in
the Liquidator's Application for Court approval and will represent
all of the remaining cash of ACE less accounts payable and a
reserve to cover the remaining fees and expenses of the liquidation
and dissolution and remaining contingencies.
The Liquidator currently expects that the Court hearing will be
held in January 2018. The Liquidator
will post a copy of the relevant application to the Court and
notice of the hearing date on its website at
www.ey.com/ca/aceaviation at least 7 days in advance of the hearing
date. Shareholders and other parties who have questions or require
additional information with respect to ACE and the final
distribution and dissolution process may contact the Liquidator by
telephone (1-855-279-8388 or 416-943-4444) or by fax
(1-416-943-3300).
The amount of the final distribution will remain subject to
modification until the final amount of the distribution is
announced following receipt of Court approval. The record date and
payment date for such distribution would be announced by subsequent
press release upon receipt of approval from the Court. Subject to
receipt of the Court approval, the Liquidator currently expects to
proceed with the dissolution of ACE shortly following the payment
of the final distribution to the shareholders.
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.
ACE will continue to incur operating costs and fees for the
duration of the dissolution process.
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
third quarter ended September 30,
2017 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 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 2016 Annual
MD&A dated April 28, 2017. ACE
will continue to incur operating costs and fees for the duration of
the dissolution 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.
SOURCE ACE Aviation Holdings Inc.