Reuters: Bankruptcy News: Aveos unit to be sold piecemeal for C$10.8 mln

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Aveos unit to be sold piecemeal for C$10.8 mln Jun 27th 2012, 22:34 June 27 | Wed Jun 27, 2012 6:34pm EDT June 27 (Reuters) - Aveos's airframe division will be broken up and sold to six different buyers for C$10.8 million ($10.53 million) after a court-appointed monitor was unable to find a purchaser willing to buy the unit of the bankrupt aircraft maintenance company as a going concern. Aveos Fleet Performance Inc, once Air Canada's maintenance division, halted operations in March and laid off roughly 2,600 workers, most of whom were employed at maintenance centers in Montreal, Winnipeg and Vancouver. Aveos is seeking to sell its engine, component and airframe segments independently. Meetings with maintenance and repair businesses in North America and beyond indicated that Aveos's airframe unit was not globally competitive and could not lure a buyer to re-start operations, court-appointed restructuring officer Jonathan Solursh said. The airframe division carries out major work like hull repairs, window replacements, and corrosion treatment as well as related inspections. The business will be broken into 24 lots and sold to six companies, including Quebec-based Discovery Air Technical Services and Premier Aviation Overhaul Center, Solursh said in his third restructuring report dated June 26. Solursh said efforts to sell Aveos' engine maintenance division had turned out to be complex than initially thought and more time was needed to finalize it. He would ask the bankruptcy court to approve one or more transactions on July 26, he said. Solursh said he was dealing with "multiple parties" on the division's Air Canada contract. The deadline for bids for Aveos's component division was previously extended to July 13. Solursh said there were "multiple suitors" for this unit, some of whom had indicated they wanted a contract with Air Canada. Link this Share this Digg this Email Reprints

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