ACE Aviation reports first quarter results and provides an update on its
MONTREAL, May 29, 2014 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE)
announced today its results for the first quarter of 2014, and provided an
update with respect to its liquidation process.
2014 First Quarter Results
In the first quarter of 2014, ACE recorded an increase in net assets in
liquidation of $0.2 million due to interest income earned during the quarter
offset by administrative and other expenses.
As at May 29, 2014, ACE's only remaining assets consist of cash and short-term
investments in an aggregate amount of approximately $133 million.
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 unaudited consolidated financial statements of ACE
for the three months ended March 31, 2014 and the related management's
discussion and analysis include a description of proofs of claim which were
filed and the current status of such claims and the liquidation process. The
Liquidator will not proceed with any further distributions to shareholders
pending satisfactory resolution of the ongoing liquidation matters described
in the interim unaudited consolidated financial statements and any other
contingencies that may arise during the course of the liquidation process.
Future distributions of ACE's remaining net cash to its shareholders are
subject to the expiration or settlement of any contingencies and there is no
certainty as to the timing or amount of such distributions. 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
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
May 20, 2014 confirming that no annual shareholder meeting will be held in
2014 with respect to the financial year ended December 31, 2013. 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, the unaudited interim
consolidated financial statements and related management's discussion and
analysis for the three months ended March 31, 2014 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 2013 Annual MD&A dated April 25, 2014. 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
SOURCE ACE Aviation Holdings Inc.
David Saldanha, Ernst & Young Inc., (416) 943-4444, Internet:
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-0- May/29/2014 10:00 GMT
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