Looking to buy bankrupt air carrier

[Anonymous1]

Would any readers know of an air carrier under recent receivership with only the corporation for sale (i.e. no OC, aircraft, equipment, etc.? The company must have significant declared losses (i.e. in excess of $500,000) and no assets. I am simply looking to purchase the corporate losses in order to carry forward for tax considerations. For a clean insolvency, I could offer up to 5% net of total declared losses. PM preferred.

I am also looking for current receivership contact info for the following:
Canadian Global Air Ambulance
Jetsgo
Peace Air
Wildcountry
Sonic Blue

Thank you

[Phlyer]

You can have Peace Air but I have quite a few friends there that are still owed money.
What kind of stipulations would there be on your little tax saving scheme in regards to what is owed to creditors?

[MUSKEG]

Most people in Anon 1 position didn't get their cash by giving it to other people, deserved or otherwise.

[Anonymous1]

If Albert had accumulated $500,000 in losses prior to closing, then I could pay $25,000 to the receiver, and yes, the pilots might get some of that depending on their place in the pecking order. Do you have current contact info for their receiver or any idea of their total accumulated losses prior to insolvency?

[2R]

Be careful ,they changed the tax laws and what you are proposing may not be possible anymore .
It was a big business on the old Vancouver stock market that and parting money from fools.

[Phlyer]

If Albert had accumulated $500,000 in losses prior to closing, then I could pay $25,000 to the receiver, and yes, the pilots might get some of that depending on their place in the pecking order. Do you have current contact info for their receiver or any idea of their total accumulated losses prior to insolvency?

No, I don't. Why not contact Albert?

[1000 HP]

From personal experience, I can tell you that the employee is at the bottom of the barrel when it comes to bankruptcy pay-outs. The bank and the government will get their money first

[Anonymous1]

Correct me if I'm wrong, but I thought the latest tax law states the business must be in a related field to your current business which is different than what was going on in Vancouver. Yes, the Receiver General takes precedence over all other claims but I'm not sure where employees fit in.

[JAHinYYC]

Correct me if I'm wrong, but I thought the latest tax law states the business must be in a related field to your current business which is different than what was going on in Vancouver. Yes, the Receiver General takes precedence over all other claims but I'm not sure where employees fit in.

Rank order:

Government (protected by statute)
Securreds (lenders with a priority claim over assets)
Employees - wage claims only, for expenses/training bond you get lumped in with the unsecurreds
Unsecurreds (suppliers, customers)
Shareholders

Generally speaking there is more than enough to pay out the securreds because they never lend more than a partial value against assets. Bankruptcy courts try to bend over backwards to protect the claims of employees for wages (providing there is anything left on the carcass).

[JAHinYYC]

Correct me if I'm wrong, but I thought the latest tax law states the business must be in a related field to your current business which is different than what was going on in Vancouver. Yes, the Receiver General takes precedence over all other claims but I'm not sure where employees fit in.

You also have to be wary of the "change of control provisions". In the event there is a change of control then the tax pools cannot be used as deductions against general business income, but become "streamed" against certain operations.

[Meatservo]

*Edited*




Oh, sorry... I thought you were looking for information on how to bankrupt an air carrier... I have lots of advice for that.

[Panama Jack]

I thought you were looking for information on how to bankrupt an air carrier... I have lots of advice for that.

Like, "hire me"?

[Meatservo]

Bingo.

[Doc]

I've always got my eyes open for a bankrupt whorehouse.

[Cat Driver]

I've always got my eyes open for a bankrupt whorehouse.

There is no such thing Doc.

[Doc]

I've always got my eyes open for a bankrupt whorehouse.

There is no such thing Doc.

Ya mean, you can't screw away the profits?? You're just not trying "hard" enough!

[C-FABH]

Say, Anonymous, you didn't happen to buy Zoom last night did you?

[swordfish]

When Peace Air went down, they had debts of approx $4.2 million (from memory), and assets of about $3.2 million (from memory). The secured creditors were owed more than the assets, leaving zilch for the employees. The employees filed claims with Deloitte Touche and were laughed out the door (metaphorically) and told that we were wasting our time filing a claim.

I am puzzled as to why you would want to acquire any of those interests.

[Anonymous1]

Simple. Purchasing a bankrupt carrier allows the financial statements to be consolidated, thereby ensuring minimum taxation for a number of years. Its one of the last remaining loopholes Revenue Canada has not managed to close. Similar to splitting income with a spouse. Thanks for the lead for Deloitte and Touche....that's what I needed.

[BusDriver]

Just wait a few months and you can buy the remains of AC, or buy one of there 777's and lease it back to them?