MONTRÉAL, May 30, 2023
/CNW/ - ACE Aviation Holdings Inc. (ACE) announced today its
results for the first quarter of 2023.
2023 First Quarter
Results
In the first quarter of 2023, ACE recorded an
increase in net assets in liquidation of $31,000 as a result of interest income during the
quarter which offset administrative and other expenses.
As at March 31,
2023, ACE's only material remaining assets consisted of cash
in an aggregate amount of approximately $6.1 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 three-month period ended March 31, 2023 and the related management's
discussion and analysis include a description of proofs of claim
which were filed and the status thereof.
Final Distribution to Shareholders
and Dissolution
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. Following completion of such processes, 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. The final distribution and
dissolution are currently expected to occur by the end of the
financial year ended December 31, 2023. The final amount
to be distributed is expected to 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 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 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 three-month period ended
March 31, 2023 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
2022 Annual MD&A dated April 28,
2023. 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.