Largest creditor says it’s lost confidence in the ability of Springer’s management to run the business, but the judge wants it held together as a going concern
Media coverage of the situation at Springer Aerospace has so far almost exclusively focused on the Echo Bay company's restructuring efforts.
"I have spoken with third parties, including large international aerospace corporations, as well as employees of Springer who wish to invest in the corporation," Grant said. "Accordingly, Springer requires additional time to properly market the business as a going concern," Grant said.Desjardins is less optimistic about the prospects for a quick sale of the company.
In the meantime, having been granted protection from its creditors and $1.5 million in debtor-in-possession financing, Springer will carry on its business operations as it undergoes restructuring under the Companies' Creditors Arrangement Act "Springer has built its business up since 1972. It has trained and retained a skilled workforce through the COVID-19 pandemic."
"In addition, public policy weighs in favour of a going-concern restructuring. Springer is a significant local employer. It is also operating in a critical sector that is vital to the fly-in and Indigenous communities in Northern Ontario," the judge said.On Tuesday, Walsh will hold a face-to-face town hall meeting with the company's workers.
The following description of Springer Aerospace has been excerpted by SooToday from a 40-page affidavit sworn by Christopher Guest on Nov. 22: Springer has special expertise in the salvage and rebuilding of derelict aircraft. The company specializes in the rebuilding of otherwise obsolete or damaged aircraft and restoring them to good working order.
To my knowledge, Springer is the only company in Canada to offer all of these services as a one-stop-shop. Springer has the hangar capacity to run up to seven lines or projects at once, including major or heavy projects. Springer’s customers are located throughout the world and include aircraft manufacturers such as Bombardier, De Havilland and Basler as well as commercial operators such as Air Canada and Porter Airlines.
In addition to the above, a large percentage of Springer’s customers service the northern Ontario region by providing air transport for individuals, delivery of food, fuel and medical supplies as well as air ambulance services to the most remote areas of northern Ontario, including most of the fly-in and Indigenous communities.
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