Buyer found for insolvent Springer Aerospace, would keep Sault Ste. Marie business operating
Pending court and debtor approval, a buyer has been found for Springer Aerospace in Sault Ste. Marie, which declared insolvency late last year.
Springer CEO Christopher Grant said in a March 29 affidavit that the buyer intends to carry on business as usual, should the offer be accepted.
“The potential transaction pursued contemplates the sale of the applicants’ business as a going concern, with current management continuing to participate in the business going forward,” Grant said.
“The transaction is expected to be structured in a manner that results in minimal disruption to employees and customers.”
Based in Echo Bay, near Sault Ste. Marie, Springer is an aircraft maintenance company that has operated since 1972 and employs about 100 people.
It occupies about 210 acres and includes three hangers and an airport that includes a main runway that is large enough to accommodate Boeing 737s for landing and takeoff.
The business was hard hit by the COVID-19 pandemic, which largely shut down the airline industry for an extended period.
With the aviation industry shut down, revenues tanked and the company’s inability to make their debt payments alarmed Caisse Desjardins Ontario Credit Union Inc., the company’s primary lender.
The company had undergone an expansion prior to the pandemic that wasn’t properly planned, court documents said, and it also saw an exodus of senior staff.
Debts piled up and totalled $5.7 million by July 2022. By November, the company had just $1,400 in its bank account and filed for insolvency protection under the Companies’ Creditors Arrangement Act (CCAA).
According to court documents, terms of the sale have been finalized with the undisclosed buyer. The buyer is now in talks with Desjardins and other debtors “to ensure that conditions can be satisfied or waived and the transaction closed in a timely manner.”
“It is expected that the sale proceeds will be sufficient to satisfy the applicants’ priority payables as well as a significant portion of Desjardins’ outstanding liabilities,” the court document said.
“The transaction, if approved, will allow the business to continue with a clean balance sheet, preserve employment, and ensure that work will continue in the normal course on customer aircraft.”
The company received court approval to extend the restructuring deadline to April 11 to allow the sale to be finalized.
Springer is one of the few full-service aircraft maintenance, repair and overhaul businesses in Canada, and the only one located in northern Ontario.
Springer’s customers include airlines, corporations, and private individuals. The company’s facilities comprise state-of-the-art hangars as well as an airport and runways with the capability to accommodate aircraft as large as a Boeing 737s. Before it found a buyer, Springer received court approval to offer bonuses to certain key staff if they remained with the company. That was an attempt to stop the exit of employees that began after the CCAA process began.
CTVNews.ca Top Stories
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
Pro-plastic lobbyist presence at UN talks is 'troubling,' say advocates
Environmentalist groups are sounding the alarm about a steep increase in the number of pro-plastic lobbyists at the UN pollution talks taking place this week.
'Too young to have breast cancer': Rates among young Canadian women rising
Breast cancer rates are rising in Canada among women in their 20s, 30s and 40s, according to research by the University of Ottawa (uOttawa).
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Trump's lawyers grill ex-tabloid publisher as 1st week of hush money trial testimony nears a close
After prosecutors' lead witness painted a tawdry portrait of “catch-and-kill” tabloid schemes, defence lawyers in Donald Trump's criminal trial on Friday sought to dig into an account of the former publisher of the National Enquirer and his efforts to protect Trump from negative stories during the 2016 election.