Discovery Air Inc.'s subsidiaries owe $50,000 to N.W.T. gov't
Company was granted protection from creditors in March
Facing creditor protection, Discovery Air Inc.'s subsidiaries owe the N.W.T. government about $50,000 in airport and landing fees, despite managing to pay off a $34 million loan given by the government nearly a decade ago.
Discovery Air Inc. is the parent company of Air Tindi, Discovery Mining Services, and Great Slave Helicopters. All three Yellowknife companies are being sold after Discovery Air filed for protection from its creditors.
The Ontario Superior Court of Justice approved Discovery Air for creditor protection in March 2018. Discovery Air is selling the companies under court supervision. The process is a way for the company to avoid bankruptcy.
In 2009, the territorial government bailed out Discovery Air with a $34 million loan. The company has since paid that back, leaving the only amount outstanding to the government $50,000 in airport and landing fees, according to the territory's finance department.
The company owes $72.7 million to Clairvest Group Inc., making Clairvest Group Inc. its largest creditor. Clairvest has also put in a bid for the three companies.
All sale proposals for Great Slave Helicopters, Air Tindi and Discovery Mining Services must be in by June 4. The sale is expected to be made on July 31.
KSV Advisory Inc. is monitoring the sale of those companies.
A report from KSV Advisory Inc. says it is concerned Discovery Air may need to borrow more money than expected to complete the court proceedings. The process may also be delayed beyond the June deadline, further adding to its costs.