Discovery Air Inc., a specialty aviation services company, operating through its subsidiaries across Canada and in select locations internationally, filed for protection under the CCAA on March 21. Discovery Air has operations in medevac equipped aircraft services, air charter services, helicopter operations and transport and logistics support sectors. With over 140 aircraft, the Company through its subsidiaries is one of the largest air operators in Canada, employing more than 850 flight crew, maintainers and support staff to deliver a variety of air transport, maintenance and logistics solutions to its government, airline and business clients.
The principal purpose of the CCAA proceedings is to allow the Company to conduct a Court-supervised sale process for its equity interest in its wholly-owned operating 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 has filed for CCAA protection but each has the benefit of a stay of proceedings to prevent creditor actions against them as a result of the Company’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. KSV Kofman Inc. was appointed Monitor. Counsel are Goldman Sloan Nash & Haber LLP for the Company, Goodmans LLP for the Monitor and Torys LLP for Clairvest Group, the Company’s principal shareholder and secured lender.