Ace Aviation files first quarter financials



    MONTREAL, May 8 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE) today
filed its interim unaudited financial statements and MD&A for Quarter 1, 2009.
    In accordance with the applicable accounting standards, the financial
statements are prepared on a liquidation basis of presentation. If ACE
subsequently does not proceed with the liquidation of its net assets, ACE will
revert to a going concern basis of presentation.
    At April 30, 2009, ACE's principal assets are cash and cash equivalents
of $373 million and its 75 million shares in Air Canada, which had a market
value of $62 million on that date. ACE's investment in ACTS Aero has been
written down to nil. ACE's obligations include convertible senior notes with a
principal amount outstanding of $64 million, 3.2 million convertible preferred
shares with a fully accreted value of $80 million at April 30, 2009 and
accounts payable and accrued liabilities of $16 million.
    During the quarter, ACE purchased for cancellation 80% of the convertible
senior notes outstanding and 74% of the preferred shares outstanding for an
aggregate purchase price of $233 million and $186 million, respectively, by
way of three substantial issuer bids which concluded in January and March
2009.
    ACE is continuing its ongoing dialogue with shareholders and considering
alternatives available to it with a view to arriving at an optimal outcome.
ACE is also assisting Air Canada in its efforts to deal with the significant
challenges it faces in 2009 with a view to enhancing ACE shareholder value.
    For further information on ACE's public disclosure file, including ACE's
Annual Information Form, please consult SEDAR at www.sedar.com.

    CAUTION REGARDING FORWARD-LOOKING INFORMATION
    ---------------------------------------------

    Certain statements in this news release may contain forward-looking
statements. 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. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
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, industry,
market, credit and economic conditions, the ability to reduce operating costs
and secure financing, pension issues, energy prices, currency exchange and
interest rates, employee and labour relations, competition, war, terrorist
acts, epidemic diseases, insurance issues and costs, changes in demand due to
the seasonal nature of the business, supply issues, changes in laws,
regulatory developments or proceedings, pending and future litigation 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 to ACE's 2008 MD&A dated February 13,
2009. ACE's liquidation by plan of arrangement is subject to the approval by
the shareholders and the court, and the final completion of ACE's liquidation
would be subject to the obtention of any required tax clearance certificates
and any tax or other regulatory approvals. If ACE does not proceed with the
liquidation of its assets, or to do so in a timely manner, ACE will continue
to incur operating costs. The forward-looking statements contained herein
represent ACE's expectations as of the date of 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.




For further information:

For further information: Des Beaumont (Montréal), (514) 205-7639;
Internet: www.aceaviation.com


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