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Skyservice - Status Updates

 October 23, 2014
To all Former Employees with Proven Claims against Skyservice - October 23, 2014

The payment of an interim distribution to creditors of 10% on account of proven unsecured claims has been authorized in accordance with the provisions of the Bankruptcy and Insolvency Act.

By law, no payment can be made in respect of claims by former employees without clearance from Service Canada which reviews such claims for any required withholdings arising from past payments of employment insurance benefits. Such clearance has been received in respect of a number of claims, for which claims dividend cheques were mailed on or around March 13th, 2014 and October 8th, 2014. As at October 23, 2014, Service Canada clearance remains outstanding for approximately 704 claims. The Trustee has no control over the timing of Service Canada clearances and is therefore unable to provide any estimate of when the remaining interim distribution payments will be released.

Former employees may receive a letter from Service Canada notifying them of a determination of overpayment of employment insurance benefits as a result of the interim distribution to be paid. Please note that such letter is not a demand for payment as the Trustee is required to deduct any benefits overpayment from the distribution to the former employee and remit the withholding to Canada Revenue Agency. In the unusual even that the distribution is insufficient to pay the benefits overpayment, any balance would be payable by the former employee, in which case a separate "Notice of Debt" would be issued by Service Canada.

Unless you wish to appeal the Service Canada determination in accordance with the process laid out in their letter, you do not need to take any action and interim distribution payments, net of applicable withholdings, will be issued by the Trustee following receipt of Service Canada clearance.

If you have changed your address since the filing of your claim against Skyservice please ensure that you inform the Trustee at skyservice.receiver@fticonsulting.com.

If you have any questions about the forgoing, please contact the trustee at skyservice.receiver@fticonsulting.com.

  April 19, 2012
On April 19, 2012, FTI Consulting Canada Inc., in its capacity as trustee of the estate of Skyservice Airlines Inc., held the first meeting of creditors of the bankrupt where the appointment of the trustee was affirmed. The minutes of the first meeting of creditors are available on this site under the Bankruptcies section.

Pursuant to the Bankruptcy Order, creditors were not required to file a proof of claim in the bankruptcy as the Claims Procedure approved and implemented in the receivership proceedings of Skyservice was ordered to be binding in the bankruptcy.

All documents filed with the Court in respect of the Bankruptcy can be found in the Bankruptcy section listed in the index to the left.

 March 29, 2012
On March 29, 2012, the Honourable Justice J. Morawetz approved an order lifting the stay of proceedings in the receivership for the purpose of substituting International Lease Finance Corporation as the applicant creditor in the application for a bankruptcy order, originally made by Sunwing Tours Inc. (now Sunwing Vacations) and Thomson Airways Limited.

On March 29, 2012 the Honourable Justice J. Morawetz approved a Bankruptcy Order against Skyservice Airlines Inc. and appointed FTI Consulting Canada Inc. as trustee of the estate of the bankrupt.

On March 29, 2012, the Honourable Justice J. Morawetz approved an order granting FTI Consulting Canada Inc., in its capacity as trustee in bankruptcy of Skyservice Airlines Inc., the authority to commence proceedings to challenge transactions as potential preferences or transfers at undervalue by way of Notice of Application, without inspector approval, prior to the first meeting of creditors.

 April 6, 2011
On April 6, 2011, the Honourable Justice J. Morawetz issued a decision in regards to the priority disputes and the application for aircraft seizure and detention orders.
The Applications of the GTAA, OMCIAA and NAV Canada for aircraft seizure and detention orders are not affected by the stay, are granted and are to be enforceable up to the full amount owing to GTAA, OMCIAA and NAV Canada. The motions brought by the Aircraft lessors for the requested declaration in respect of the entitlements of the Airport Authorities and NAV Canada are dismissed. If the parties are unable to reach agreement in costs, written submissions to a maximum of four pages may be filed within 30 days by the parties.

 
 October 14, 2010
In accordance with Orders issued on October 14th, 2010, the Honourable Justice J. Morawetz approved the sale of the hangar and associated steps to complete the transaction, as well as an interim distribution to Thomas Cook Canada Inc.

 
 March 31, 2010
On March 31, 2010, FTI Consulting Canada Inc. was appointed as Receiver pursuant to an Order of the Ontario Superior Court of Justice of all the assets, undertakings and properties of Skyservice Airlines Inc.

 

Contact FTI

FTI Consulting
TD Waterhouse Tower
79 Wellington Street West
Suite 2010, P.O. Box 104
Toronto, Ontario M5K 1G8

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