Aveos – Maintenance of engines would have found a buyer

Equipment maintenance of engines of Aveos, where worked once 500 people at Dorval, was to be sold at a auction this Wednesday and Thursday, but the operation was off, because a potential buyer is presented in the decor.

The restructuring Chief named by the Superior Court came say yesterday to Mark Schrager j. that the suspension of the auction is a “big decision” and that he could not do otherwise, because the buyer who has manifested itself, six to eight weeks ago, is serious.

“Essentially, the company said:” we weren’t aware of what was happening here ‘ “, said Jonathan Solursh, which has multiplied since the spring approaches to find investors for what remains of Aveos, former division of Air Canada become subcontractor in 2007.

Mr. Solursh did not reveal the name of the company, limiting itself to be described as a “sophisticated” group that was strong enough to enter into a transaction quickly kidneys.

Reboot?

The interested buyer is studying all options, including a restart of activities in the current premises, as well as a relocation of equipment “outside the country”, added Mr. Solursh in an official report to the judge.

A name that has circulated in the fall is that of Lockheed Martin, learned Le Devoir. He was unable to join the firm. An attempt to join GE Aviation, which manufactures including engines CF-34 Aveos workshop was able to repair, was also unsuccessful.

So far, investors who have laid their hands on assets of Aveos are well established in their area. For example, maintenance of parts went to the British Group A J Walter, while contract maintenance of motors binding Aveos Air Canada was bought by Lufthansa Technik. This contract was also coveted by the German MTU engine manufacturer.

When the Aveos group suddenly closed its doors on 18 March, it had approximately 2600 employees, including 1800 in Montréal. Of the three divisions for sale, only that of the maintenance of parts has found a buyer. The other two (cabins and engines) have made their way to an outright liquidation.

The efforts of the head of restructuring and those of the controller, FTI Consulting, have so far allowed to harvest approximately 47 million. Priority creditors, represented by a Credit Switzerland subsidiary in the Cayman Islands, will shortly receive a first payment of 12.5 million. The total debt amounts to nearly 220 million.

Continuation of Quebec

The next chapters will be held again in the courts. The Quebec Government accused Air Canada – former parent company of Aveos and main client – do not comply with the Federal law of 1988 that led to its privatization. The Act stated that the carrier must maintain centres ‘maintenance and revision’ in three cities, or Montreal, Winnipeg and Toronto. The Government of Manitoba requested to obtain the status of participant in this procedure, which is to begin on November 19 at the Montreal courthouse.

The carrier States that the 1988 Act does not Air Canada must maintain ‘heavy’ maintenance activities in these cities. In addition, he says that currently, Air Canada 1730 employees who perform daily maintenance work in the three cities concerned: 750 in Montréal, 930 in Toronto and a fifty in Winnipeg.

In 2007, that the carrier divested itself of what would one day become Aveos, selling its 700 million division.

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