2015 Third Quarter Results
In the third quarter of 2015, ACE recorded a decrease in net assets in liquidation of approximately $39,000 as a result of administrative and other expenses, offset by interest income earned during the quarter.
As at November 24, 2015, ACE’s only remaining assets consist of cash in an aggregate amount of approximately $19 million.
Liquidation Process and Interim Distribution to Shareholders
On June 28, 2012, further to the approval by ACE shareholders on April 25, 2012 of a special resolution providing for the voluntary liquidation of ACE, the Superior Court of Québec (Commercial Division) (the “Court“) issued an order appointing Ernst & Young Inc. as liquidator of ACE (the “Liquidator“).
Pursuant to an order issued by the Court on February 25, 2013, the Liquidator established a process for the identification, resolution and barring of claims and other contingent liabilities against ACE. Creditors had until May 13, 2013 to file their proof of claims, failing which their claims would be barred and extinguished. The interim consolidated financial statements of ACE for the third quarter endedSeptember 30, 2015 and the related management’s discussion and analysis include a description of proofs of claim which were filed and the status thereof.
Given the results of the claims process and the expiry of a significant portion of the contingent obligations covered by proofs of claims filed in such process, the Liquidator announced on April 28, 2015 that it intended to seek Court approval for a distribution to shareholders of ACE in the aggregate amount of $115 million, or approximately $3.54 per common share of ACE. The Court approved such distribution at a hearing held on May 8, 2015. The record date to determine shareholders entitled to receive the distribution was May 26, 2015 and the payment of the distribution was completed on June 2, 2015.
Future distributions of ACE’s remaining net cash to its shareholders are subject to the expiration or settlement of any contingencies and the approval by the Court of any such distributions. There is no certainty as to the timing or amount of such distributions. The final distribution to shareholders and the cancellation of the shares of ACE will not occur until all remaining contingent liabilities are settled or otherwise provided for.
The distribution paid on June 2, 2015 was, and any additional distributions will be, designated as eligible dividends for the purposes of the Income Tax Act (Canada).
For additional information with respect to the liquidation of ACE, refer to the management proxy circular dated March 9, 2012, the interim consolidated financial statements and related management’s discussion and analysis for the nine-month period endedSeptember 30, 2015 and the other public filings of ACE which are available at www.sedar.com and www.aceaviation.com.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
Certain statements in this news release may contain forward-looking statements. Forward-looking statements may relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable. These statements may involve, but are not limited to, comments relating to strategies, expectations, planned operations, future actions, tax liabilities, the timing of the liquidation, the timing and amount of further distributions to shareholders, the final distribution to shareholders and the cancellation of the shares of ACE. These forward-looking statements are identified by the use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and similar terms and phrases, including references to assumptions. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts or forward-looking predictions or statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, market, regulatory developments or proceedings, and actions by third parties as well as the factors identified throughout ACE’s filings with securities regulators in Canada and, in particular, those identified in the Risk Factors section of ACE’s 2014 Annual MD&A dated April 28, 2015. ACE will continue to incur operating costs and fees for the remaining duration of the winding-up process. The forward-looking statements contained in this news release represent ACE’s expectations as of the date they are made, and are subject to change after such date. However, ACE disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.