On January 31, 2020, Air Georgian Limited (“Air Georgian” or the “Company”) filed a Notice of Intention to Make a Proposal under subsection 50.4(1) of the Bankruptcy and Insolvency Act (the “BIA”). KPMG Inc. ("KPMG") consented to act as trustee under the proposal. On February 26, 2020, the Company was granted an extension of time to file a proposal to and including March 16, 2020.
On March 16, 2020, the Court approved, among other things, an asset purchase agreement dated March 9, 2020 between the Company and 2746904 Ontario Inc., an entity related to one of the Company’s shareholders (the “Purchaser”), for substantially all of the Company’s assets, properties and undertakings (the “Transaction”). As more fully described in the Second Report of the Proposal Trustee dated March 12, 2020, in exchange for substantially all of the Company’s assets, properties and undertakings, the Purchaser has agreed to assume the Company’s secured debt and certain other obligations. On April 17, 2020 the Company was granted an extension to and including June 1, 2020 to close the Transaction. On May 29, 2020, the Company and the Purchaser closed the transaction.
The deadline for Air Georgian to file a proposal was June 1 2020 and the date has passed without a proposal being filed. As such, Air Georgian Limited is deemed to have made an assignment in bankruptcy pursuant to section 50.4(8)(b) of the BIA (the “Bankruptcy Proceedings”) effective June 2, 2020. KPMG is acting as the trustee-in-bankruptcy (the “Trustee”).
The First Meeting of Creditors will be held by teleconference on the 19th day of June, 2020 at 1:30 pm Eastern Time. Teleconferencing details will be made available upon request.
Information for Former Employees regarding the Wage Earner Protection Program (“WEPP”)
WEPP provides payment up to a maximum amount for eligible unpaid wages, vacation pay, termination pay and severance pay to former employees of an employer who is bankrupt. The Trustee will be making an application to WEPP on behalf of all former employees of Air Georgian The Trustee will mail to all former employees certain additional information regarding WEPP within 45 days of the date of the bankruptcy, being July 17, 2020.
UPDATE: Further to an extension granted by WEPP to October 15 the Trustee has received a further extension from WEPP to November 30, 2020. Please note that all eligible employees other than a small number of employees who are members of the ALPA trade union have been sent their packages. The individuals concerned will be sent their packages once consultations have been concluded.
