ACE Aviation prepares to dissolve net assets
Feb. 10, 2012, Montreal - ACE Aviation Holdings Inc. once Air Canada's largest shareholder, said it will seek shareholder approval for its eventual dissolution and distribution of remaining net assets.
February 10, 2012 By The Canadian Press
The Montreal-based company was formed in 2004 to be the airline's parent company as part of Air Canada's court-supervised restructuring.
No date was provided for the shareholder vote or wind up.
It has $384 million of assets for liquidation, or $11.83 per share as of Jan. 31. That includes $356 million of cash and
equivalents and 31 million Air Canada shares worth $33 million, or 11.11 per cent of the airline.
ACE has previously spun off the Aeroplan frequent flyer program and regional airline Jazz Air, as well as the technical service division.
Chief executive Robert Milton said last May that the end would come in the next year.
ACE changed the basis of preparing its financial statements from going concern to liquidation, effective Jan. 1, 2011.
For 2011, the company recorded a loss and reduction in net assets in liquidation of $90 million. This includes unrealized losses of $76 million and $5 million respectively on ACE's investment and warrants in Air Canada.
In the fourth quarter, the loss and reduction in net assets in liquidation was $21 million. This includes a $15 million unrealized loss on its investment in Air Canada and a $1 million loss on warrants in the airline.