Quebec aerospace MRO firms hit by Jetsgo’s CCAA filing
Montreal, QC -- Following the announcement made by Jetsgo on March 11, 2005, that it is halting all operations, Nor...
Montreal, QC — Following the announcement made by Jetsgo on March 11, 2005, that it is halting all operations, NordTech Aerospace Inc. and its operating subsidiaries, ExelTech Aerospace and NordTech Aerospace (NTA) Inc. made the following statements:
The company was providing maintenance, repair and overhaul services to Jetsgo’s fleet of MD-80s and Fokkers 100. It estimates that its Jetsgo business represented approximately 35% of the combined revenues of NordTech and ExelTech in 2004. The balance is split among 38 other clients, from 11 different countries, with no other client representing more than approximately 10% of the total combined revenues for the same period.
The company has already begun to implement the necessary actions to adjust to the loss of the Jetsgo business. These actions may include temporary layoffs and the cancellation of orders for aircraft parts.
The company estimates that it is owed approximately $2.5 million by Jetsgo for services recently provided on Jetsgo aircraft. Management is finalizing its assessment of total monies owed by Jetsgo as well as reviewing other obligations of Jetsgo, and the company will take all available steps against Jetsgo, including those available under the Companies’ Creditors Arrangement Act to recover monies owed by Jetsgo.
All other parts of the company’s business are unaffected by the Jetsgo situation and the company continues to seek out new clients and other growth opportunities to deliver on its plan of becoming one of the leading providers of third party MRO services in North America.
Derek Nice, president and chief executive officer of the company commented: “The action taken by Jetsgo will have a negative impact on our financial results in the short term. However, we fully expect to return to growth in the near future as we position the company to be one of the dominant suppliers in the rapidly growing global aircraft MRO business.”
Nice concluded: “Our financial position is strong following the transaction between NordTech and ExelTech last month, which included the completion of a $10 million equity offering. Myself and the rest of the company’s management team remain focussed on our overall plan to significantly grow the company”.
NordTech is the largest publicly-listed commercial airframe maintenance company in Canada. Operating in the commercial aircraft MRO business through its operating subsidiaries, ExelTech Aerospace and NordTech Aerospace (NTA) Inc., it provides services to North American and overseas customers from facilities located at Montreal’s Pierre Elliot Trudeau International Airport and at Quebec City’s Jean Lesage Airport.