Chrono Aviation Inc. et al., CCAA

Chrono Aviation Inc. et al. (the “Chrono Group”), a group of Québec City-headquartered companies which operate a charter airline, obtained CCAA protection on October 18 listing $74.2 million in liabilities, including $18.7 million to National Bank.

The companies mainly serve customers in isolated communities in the Far North of Québec, Nunavut and other parts of the Arctic. They also provide aircraft maintenance and airport services, with bases at MET – Montreal Metropolitan Airport, Québec City Jean Lesage International Airport and Rimouski Aérodrome. The Chrono Group employs over 330 people (270 of them on a full-time basis), including pilots, flight attendants, mechanics and others.

The companies’ financial situation has deteriorated due to a series of challenges, including the negative impacts of COVID-19, increased aircraft maintenance costs, and the negative impacts of a $21 million lawsuit brought by Nolinor Investments. The Chrono Group has been attempting to address these issues for the past couple of years, including by running three sales processes while at the same time pursuing a restructuring.

The purpose of the CCAA proceedings is to effect an RVO transaction pursuant to which Aviation Starlink will become a major business partner of the companies, allowing for the continued operation of the Chrono Group.

Deloitte is the monitor.

Counsel is Osler for the Chrono Group, Norton Rose Fulbright for the monitor, McCarthy Tétrault for National Bank, Davies for LBC Capital, BLG for BDC, Langlois for Q-12 Capital, Stein Monast for IQ, Woods for AvJet Holding et al., Daigle & Matte for Gestion J Rouleau Gagnon et al., and Robinson Sheppard Shapiro and AVENS for Nolinor Investments.