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A14 --The Terrace Standard, Wednesday, June 14, 2006 |

“yp.

_Hawkair gets time ©
to improve finances |

-HAWKAIRRi is getting at least ©

"eight months to. continue to -
_ prove its economic viability .
before’ creditors |
‘whether or not the company ..
has a future.

The ‘decision’ of Mr. Jus- 4

tice Grant Burnyeat in B.C.
Supreme , Court last’ week
also called for the regional .
‘airline, which has been un-
‘der. bankruptcy . protection .

_ since last fall, to also file its ;

proposed: creditor payment
Plan by next week.

« The company was to have:
filed its: payment plan at-the

. June 8 ‘hearing but the extra ©.

time and the delay in voting

*. was welcomed by company -
‘general manager Tom Be--

shr. -
“Really, the better, we e do
- between now and the first

_ quarter [of 2007] the more
_ We can potentially offer our’

~ creditors,” he said.
“We can now. more than’

“ever show, ‘we are. a going “

“concern,” Ms

“Hawk ir. “does , ‘not’. “yet
“now how many cents on the
dollar it-wants to offer credi-
_ (Ors Or, ‘the time. schedule i in.

which they will be made. .

“But the judge indicated,
and. this was an off the cuff
~ remark; that’it could, be ‘in
the order of 10. per cent,”
.-$aid Beshr. -',
“Tt could be 10 per cent
or 15 fer cent of 20 per cent.”

~” It will be whatever the com-.
* pany can afford. without put-
ting its economic viability at

risk.”
‘Unsecured creditors are.

~- owed. just ‘under $2 mil

lion ‘and the largest secured
__.creditor, . Maritime-based
“IMP: Group, His owed - AP:

. twoof the three Dash 8- 100s
a it flies.. oe =
The key to Hawkair’ s fu.

ture is its ability to raise the.
money to buy newer aircraft.
to replace IMP’s Dash 8s:
which .are slow and cannot
carry as much weight. as the
company wishes...

A company under bank-..
Tuptcy protection \ won’t have «

» the easiest time to raise mon- - -

ey but Beshr said Hawkair

is now more confident than —

ever before of its ability to
buy those newer planes.
Beshr said the key to last
week’s court appearance was
having Mr. Justice Burnyeat
question IMP’s lawyers
closely about their plans.

Going: ‘into the hearing, |

the company had not budged
from its original position that
it wanted full payment for its
two aircraft as set out wher

_ they were ‘first bought and ~

ment, it wanted its anes
- back.

that if it could not cs lanes

* But, ‘what’ s going to hap- .

pen now, said Beshr, is much
' different.
Essentially. I IMP will’ get

House
burns

INVESTIGATORS
still looking into the reasons

__ why a vacant house north of

' Terrace burned to the ground
around 2 a.m. June 4.
The home, about 5km

north of the city on the

‘Kalum Lake Road was com-
pletely on fire when Terrace
firefighters responded..

“There was no roof left -
_and the front wall had bumed

to nothing,” said Dave Jeph-

_ son of the Terrace Fire De-
partment.

‘It was burning
for quite a while before we
“got the call and that’s not
surprising because of the
time. During the time we
were here, only one car went
by on the*road.”

The area where the house
was located is covered by
am agreement between: the
regional district and the city.
It calls for Terrace fixefight-
ers to respond first because
their fire hall.

Thornhill firefighters ar- . §

rive ‘soon as possible,
‘bringite with them water in
a tanker because there is no
water service and hydrants
in that area.

, decide —

ARE:

Tom Beshr

ue that i is less than what they .
«were worth .when Hawkair
‘first paid forthem.. =”

. That value will. be ‘sub-
tracted’ from the. money;

Hawkair still, owes for the
‘two aircraft. vos
The. “difference,
Beshr estimates could bei in

“the $4 - million range, . will,

become ‘unsecured debt.

“What this essentially . 7

means is that the aircraft are

» removed, from the picture.

‘IMP will ‘become an unse-

‘cured creditor. and ° that’s:

when it ll have | a chance fo

which :

vote on. the payment plan,” -

he said. 7
Beshr’s» . optimistic of
_Hawkair will 1 buy one of the .f-

.. two, replacement aircraft in }-
_- December and the second in . ‘J.
’ February. one
..» Beshr said Hawkair also -
if has the option of selling the: |
_ IMP planes itself for fair
market value. and.‘passing |.
that money to the company.
__ “T think what really went —
* om here is that the judge was .

protecting IMP’s interests

_ and he was ‘also protecting —
Hawkair’ s
will receive one: way or the: ~
‘other full market value for»,
-its planes,” he'said.
Hawkair went into credi- .
‘tor protection: last. ‘October, ;
citing high fuel prices, high”
insurance prices. and_ stiff .
competition . with other air-
“lines as reasons it could not
* pay its accumulated bills.

interests.

~The price it was paying

_for the two IMP aircraft and. J”
for a: third Dash'8. owned by ~
” Field Aviatioin also. factored. |

in its financial problems.:

vice five years ago.

4

dee eee cee eae mem pee OTR eR AEE Ye MOTTE

| Terrace Pusuc Liseary Conpurer
| ~_ Offering hee computer access:

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To register, or for n more information, call 638-81

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A draw box. will be
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where. nomination slips can be: filled.
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77

IMP, :

., _Hawkair has atgued. that -
vin today’ s market, the planes _
- are ‘no longer, worth what -
they. paid for. them when the

airline started passenger, ser- ~ oe es
ie mt ‘Place: Coast ‘inn of the West Banquet Room

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Are you between 18 and: 30 and
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Then Rotaract i is. for yout

slips will bé entered in a. draw. The
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Come in to. Central F, lowers to enter.
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