A few tidbits from the trustee's report to the meeting of creditors held today in Montreal:
SG was officially owned by Leblanc Capital Trust/M. Leblanc family Trust (90%) and Fidelity Investment (10%)
SG was planning a $100 million IPO in 2004 to finance the acquisition of F100s and future growth. However, the IPO was "not done" and therefore, the expansion of new routes, qualified as more profitable by SG, was delayed. Result: Negative cash flow in the second part of 2004 and early 2005.
SG's net losses in the 2003 fiscal year, $6,4 million and $46 million for the first 7 months of the 2005 fiscal year.
Statement of affairs, May 13:
Assets:$38,207,000 (including 30,000,000 for aircraft/engines)
Deficit: $90,510,000 = Deep shit.
Thusfar, 6 F100s have been sold for a total price of $15,8 million. $11,5 million of this money is held in escrow pending the resolution of the NAVCAN vs. Jetsgo proceedings. All remaining aircraft are already subject to a LOI or APA. Excellent news for the creditors here.
Strangely enough, MD-83 lessors have yet to file claims against SG!!!
If you want to read the whole tale: