THUNDER BAY – BUSINESS – Wasaya Airways announced the company’s restructuring plan on April 12, 2016. Today, Vine and Williams released documents needed by creditors for a May 17 2016 meeting to vote on the acceptance of the plan.
On April 12, Wasaya stated, “Wasaya Airways is announcing an important milestone; the initiation of the final stages of the company’s comprehensive turnaround effort. The company has given formal notice it will be making a Proposal to its creditors to compromise certain claims, primarily old outstanding obligations owed to creditors, all with a view to bring the Company’s restructuring initiated 20 months ago to a successful conclusion.”
The documents released today by Vine and Williams a consumer proposal administrators and licensed bankruptcy trustee show that the overall deficit of liabilities over assets for Wasaya is $19,524,406,87.
Vine and Williams are recommending to the creditors that the restructuring plan be accepted. “For the reasons set out in the Proposal Trustee’s Report, we are recommending that creditors vote in favour of the Proposals. Please note that WALP and WGPL are filing a combined Proposal because the limited partnership structure means that they essentially have the same creditors.
“If you are a creditor of either of those companies you may file one Proof of Claim form. If you are a creditor of Leasing you should file a separate Proof of Claim form for Leasing.”
“There will be two separate creditors meetings to consider the Proposals. The meetings are being held at the Victoria Inn, 555 Arthur St. W., Thunder Bay, ON on May 17, 2016. The first meeting at 1p.m. is for creditors of Leasing. The second meeting for creditors of WALP and WGPL is being held at 2 p.m.”
The major creditor is the RBC, with $7.2 million in secured debt. Other major creditors include NOHFC, and BDC with $2.6 million outstanding.
Fort William First Nation is owed $87,000, and Wunnimum Lake First Nation is owed $1.1 million. Bearskin Lake Aviation is owed at total of $160,000.00.
Sioux Lookout Airport is owed $348,000.00.
The company in a statement issued early in April said, “Wasaya, with the full support of its Board of Directors and its shareholder communities, believes this final step is necessary in the turnaround process to ensure continued successful operations as the leading provider of airline transportation services in Northwestern Ontario.”
“Wasaya Airways has the support of its major stakeholders including our operating and term lenders moving forward. We will be coming out of this last phase as a renewed, reinvigorated and profitable entity,” Chairman of the Board of Directors Chief Bart Meekis stated. “This decision was made with consideration and input from our key stakeholders, including major lenders and aircraft lessors who back our decision.”
Wasaya Restructuring Plan
Wasaya – 2016 04 26 Trustees Report to Creditors on Proposals of WALP WGPL and Leasing by NetNewsLedger.com
