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Former Parent
Company Of Air Canada Seeks To Dissolve Operations By Eddy Metcalf |
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February 13, 2012 - ACE Aviation Holdings Inc. (ACE)
reported full year and fourth quarter results for 2011
and announced its intention to seek shareholder approval
for its winding-up, the distribution of its remaining
net assets and ultimately its dissolution in the future.
ACE Aviation Holdings Inc. is a Canadian holding company
that provides commercial airline service and technical
support and was the parent company of Air Canada from
2004 until 2006. It is headquartered in Montreal. The
company was created as Air Canada emerged from
bankruptcy in 2004. One of the more significant changes
was the merging of its small airlines into Air Canada
and Air Canada Jazz.
At
the beginning of the year, ACE began preparing its
consolidated financial statements in accordance with
International Financial Reporting Standards ("IFRS"),
with retroactive restatement of comparative figures for
2010. In 2011, ACE adopted new accounting standard IFRS
9 - Financial Instruments. This required further changes
to the 2010 comparative figures. |
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For 2011,
ACE 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 of 2011, ACE recorded a loss
and reduction in net assets in liquidation of $21 million. This
includes unrealized losses of $15 million and $1 million
respectively on ACE's investment and warrants in Air Canada. ACE recorded income of $35 million in 2010, which included a gain on the sale of ACE's investment in Air Canada of $26 million, unrealized gains of $15 million on the investment, ACE's proportionate share of Air Canada's loss, after adjustments, of $14 million and an unrealized gain of $5 million on ACE's warrants in Air Canada.
In the
fourth quarter of 2010, ACE recorded income of $61 million. This
included a gain on the sale of ACE's investment in Air Canada of
$26 million, unrealized gains of $15 million on the investment,
ACE's proportionate share of Air Canada's income, after
adjustments, of $21 million and an unrealized gain of $2 million
on ACE's warrants in Air Canada.
On January
31, 2012, ACE's net assets amounted to $384 million or $11.83
per share. ACE's underlying assets are cash and cash equivalents
of $356 million; 31 million Class B Voting Shares in Air Canada
which had a market value of $33 million based on the January 31,
2012 closing price on the TSX; and 2.5 million warrants for the
purchase of Air Canada Class B voting shares at exercise prices
of $1.44 (1.25 million warrants) and $1.51 (1.25 million
warrants) per share which had a nominal value. |