Canadian MRO Begins Bankruptcy Proceedings
Canadian MRO Springer Aerospace has begun restructuring proceedings following pandemic-related financial woes. It is now seeking potential buyers for its assets and business operations, which are based out of Echo Bay, Ontario.
In court documents from Springer Aerospace’s Companies’ Creditors Arrangement Act application, filed in late November 2022, it attributes its financial problems to COVID-19 impacts on the industry, “unusually high rates of employee turnover and operational inefficiencies from a rapid expansion of the business that was undertaken just prior to the COVID-19 shutdowns.” Its pre-pandemic expansion in 2020 included growth in its operations and services, as well as construction of a new hangar. The documents note that the company’s outstanding debt was $5.74 million by summer 2022.
Opened in 1972, Springer Aerospace operates one of Canada’s largest MRO businesses. Its services include aircraft maintenance, modification and painting, as well as components manufacturing and certification. Its facilities can accommodate two Boeing 737s simultaneously or up to seven ATR 72-sized aircraft. With approximately 100 employees, Springer Aerospace services most of the airlines, private operators and air ambulances that transport passengers, food, fuel and medical supplies to fly-in and indigenous communities in Canada.
Under the restructuring proceedings, Springer Aerospace has received approval for a sale and investment solicitation process (SISP) for its assets and business operations. The SISP will seek opportunities for a sale, restructuring, recapitalization or other form of reorganization of its assets and operations. The two-phase process began on Jan. 11, the first phase of which is soliciting non-binding letters of interest from potential buyers until Feb. 3. The second phase will solicit binding agreements, which must be submitted by March 7.
Despite its financial difficulties, Springer Aerospace’s Chief Restructuring Officer, Patrick Walsh, says its business “remains brisk,” adding: “I anticipate the SISP will open up new prospects for this business and the surrounding communities.”
Springer Aerospace is continuing to operate as normal and plans to continue offering services to its customers throughout the SISP process.