ACE Aviation reports full year results and provides an update on its
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
As at April 29, 2013, ACE's only remaining assets consist of cash and
short-term investments in an aggregate amount of approximately $132 million.
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 Québec 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 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 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
David Saldanha, Ernst & Young Inc. (416) 943-4444
SOURCE: ACE AVIATION HOLDINGS INC.
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