Field Aviation gets DIP, sale process approval in BIA proposal proceedings

Field Aviation Company Inc. and Field Aviation East Ltd., Canadian aerospace engineering and aircraft modification companies, filed notices of intention to make a proposal on June 5, 2026, after defaults under their senior credit facility and an ensuing liquidity crisis caused by Wells Fargo sweeping the companies’ accounts.

Field Canada designs, integrates and certifies special mission aircraft systems and structural modifications for government and commercial operators, with most current operations conducted from a 40,000 square foot hangar and adjacent office beside Pearson Airport. Field East is a non-operating, wholly-owned legacy subsidiary that holds certain Supplemental Type Certificates, which are Transport Canada regulatory approvals authorizing aircraft modifications. The Field group has operated in Canadian aviation since 1947, but its business deteriorated after the COVID-19 pandemic disrupted its historically profitable Calgary parts manufacturing business, which was later sold to De Havilland in 2024. The companies also pointed to costly litigation with Bombardier over a CRJ700 aircraft modification program, including a disputed damages claim of by Bombardier of approximately $38 million, and related reduction in aircraft-platform opportunities, rent escalation at the Mississauga premises, workforce reductions, high employee turnover and a lack of major new customers since 2023.

The immediate filing trigger was Wells Fargo’s April 6 default notice and daily cash sweeps, which blocked access to working capital and forced Field Canada to freeze operations and temporarily lay off nearly all employees. Wells later agreed to a temporary US$1.5 million overadvance to fund payroll and professional costs while the parties negotiated a broader restructuring package. As of the filing, Wells was owed approximately $6.1 million under the credit agreement, while aggregate secured indebtedness is approximately $8.1 million. Field Canada also reported approximately $10.7 million in unsecured debt, while Field East had no unsecured creditors.

The restructuring is built around a forbearance agreement and DIP facility to be provided by Wells, as well as an accommodation agreement FR Aviation Limited, trading as Draken Europe, pursuant to which Draken has agreed to fund Field’s operating costs and disbursements to complete its modification of Draken’s aircraft. In addition, the companies are pursuing a SISP with De Havilland and PAL acting as stalking horse bidder.

AlixPartners (formerly KSV) is the proposal trustee. Riveron Management Services is the CRO. Counsel is TGF for the Field entities, Bennett Jones for the proposal trustee, Goodmans for Wells Fargo, Norton Rose Fulbright for De Havilland, Torys for PAL Aerospace, and DLA Piper for FR Aviation trading as Draken.