MONTREAL, May 29, 2013 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE)
announced today its first quarter results for 2013.
In the first quarter of 2013, ACE recorded an increase in net assets in
liquidation of $0.4 million due to interest income earned during the
As at May 28, 2013, ACE's only remaining assets consist of cash and
short-term investments in an aggregate amount of $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"). Effective as of June 28, 2012, all of the directors and officers of
ACE have resigned from their positions and the Liquidator was vested
with the powers of the directors of ACE.
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 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.
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 and First Quarter 2013 MD&A. 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.
For further information:
David Saldanha, Ernst & Young Inc. (416) 943-4444