Conducted Under The Companies' Creditors Arrangement Act And Pending Sale Process to Preserve Business

Canadian specialty aviation business Discovery Air has been granted protection under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an order (the "Initial Order") of the Ontario Superior Court of Justice ("Court").  The company specializes in the medevac equipped aircraft services, air charter services, helicopter operations and transport and logistics support sectors.

Pursuant to the Initial Order, KSV Kofman Inc. ("KSV") was appointed as the CCAA monitor ("Monitor").  The principal purpose of the CCAA proceedings is to allow the Corporation to conduct a Court-supervised sale process ("Sale Process") for its equity interest in its wholly-owned subsidiaries, Great Slave Helicopters Ltd. ("GSH"), Air Tindi Ltd. ("ATL") and Discovery Mining Services Ltd. ("DMS") (together, the "Subsidiaries") and its residual interest in its former defence business.  The Monitor will be leading the Sale Process, which is intended to enable the businesses to operate on a going-concern basis in the long term.

None of the Subsidiaries have filed for CCAA protection.  GSH, ATL and DMS each have the benefit of a stay of proceedings to prevent creditor actions against them as a result of the Corporation's filing for CCAA protection.  All of the Subsidiaries will continue to operate during the CCAA proceedings, and obligations to employees and suppliers of goods and services will continue to be met in the ordinary course.

The CCAA proceedings will allow the Corporation and its subsidiaries to operate in a stabilized environment throughout the duration of the restructuring process.  Subject to Court approval, the Sale Process will commence shortly.  Clairvest Group Inc. and its affiliates ("Clairvest") have submitted bids to purchase the Corporation's above-described equity interests as stalking horse purchasers (the "Transactions"). Unless superior transactions to any of the four Transactions are consummated during the CCAA proceedings, the Transactions will be completed, subject to Court approval.

Clairvest has also agreed to provide funding to the Corporation during these proceedings pursuant to a Court-approved debtor-in-possession financing facility.

(Source: Discovery Air news release)

FMI: www.ksvadvisory.com/insolvency-cases/discovery-air