MONTREAL – The former parent of Air Canada (TSX:AC) is seeking approval to distribute $115 million to its shareholders as part of a court-supervised windup.
ACE Aviation Holdings Inc. was created as part of an 18-month-long restructuring of Air Canada, after the airline sought court protection from creditors in April 2003 in order to deal with a massive pension deficit and high operating costs.
The holding company, which has been under the management of a liquidator since June 2012, said Tuesday that its only remaining assets are cash and short-term investments worth about $133.8 million as of April 27.
It announced Tuesday that liquidator Ernst & Young will seek a court hearing on May 8 to get permission for the $115-million interim distribution to shareholders at a date that has yet to be determined.
The final distribution and cancellation of ACE shares won’t occur until all remaining liabilities are settled, it said.
At one time ACE was full owner of Air Canada, which has been spun off as an independent publicly traded company, as well as parent of several related businesses that have since been sold or spun off.