1138969 Ontario Inc. and Springer Aerospace Holdings Limited

1138969 Ontario Inc. ("113"), which operates one of the few full-service aircraft maintenance, repair and overhaul businesses in Canada, and the only one located in Northern Ontario, and Springer Aerospace Holdings Limited ("Springer"), which owns the facilities from which 113 operates, obtained CCAA protection on November 23. The companies' financial difficulties are attributable to: (a) the significant impact of the COVID-19 pandemic on Springer’s business, and the decision not to undertake massive employee layoffs during the pandemic in the hope that the travel industry would normalize in the short- to mid-term; (b) operational inefficiencies arising from: (i) the rapid expansion of the business undertaken prior to the COVID-19 shutdown; and (ii) a lack of key performance indicators to measure performance on an operational and financial basis; (c) rapid expansion of the business without adequate strategic planning; and (d) high levels of turnover within the organization, including in the senior management team. MNP was appointed monitor. Counsel is Aird & Berlis for the monitor, Reconstruct for the companies and Gowling WLG for Desjardins,