MONTRÉAL, Nov. 29,
2023 /CNW/ - ACE Aviation Holdings Inc. (ACE)
announced today its results for the third quarter of 2023. ACE also
announced today its intention to seek approval by the Court to
proceed with the final distribution to shareholders and the
dissolution of ACE.
2023 Third Quarter Results
In the third quarter of 2023, ACE recorded an increase in net
assets in liquidation of $50,000 as a
result of interest income during the quarter which offset
administrative and other expenses.
As at September 30, 2023, ACE's
only material remaining assets consisted of cash in an aggregate
amount of approximately $6.0 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 nine-month period ended September
30, 2023 and the related management's discussion and
analysis include a description of proofs of claim which were filed
and the status thereof.
Court Hearing to Approve 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.
The final amount to be distributed to shareholders is currently
estimated to be $5.3 million,
representing all of the remaining cash of ACE less accounts payable
and a reserve to cover the remaining expenses of the liquidation
and dissolution and remaining contingencies.
ACE is awaiting confirmation from the Court of the date of the
hearing to be held at the Montreal
Courthouse, located at 1 Notre-Dame Street East, Montreal, Quebec, H2Y 1B6. An additional press
release will be issued by ACE once the date of the Court hearing is
available.
The Liquidator will be posting a copy of the relevant
application to the Court on its website at
www.ey.com/ca/aceaviation. 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 will 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 payment of the
final distribution and the completion of the dissolution of ACE are
currently expected to occur in the first quarter of 2024, subject
to receipt of Court approval.
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
nine-month period ended September 30,
2023 and the other public filings of ACE which are available
at www.sedarplus.ca 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 expected amount of 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.