Aveos Fleet Performance Completes US$875M Restructuring

On March 12, 2010, Aveos Fleet Performance Inc. (“Aveos”) completed a US$875 million restructuring of its debt and equity. As a result of the transaction, Aveos's first and second lien debt was reduced from approximately US$800 million to US$75 million and its senior secured lenders converted their remaining debt into equity. Aveos's largest customer, Air Canada, received a minority stake in Aveos. In addition, certain of Aveos's senior secured lenders provided a new working capital facility of US$75 million.

Aveos was represented by its Vice President, Chief Legal Officer and Corporate Secretary, Nicolas Vanasse, as well as in-house counsel Antoinetta Marro, Vicki Variantzas, Judith Plourde and Philippe de Grandmont and by a team from Osler, Hoskin & Harcourt LLP that included Sandra Abitan, Marc Wasserman and Artem Miakichev (insolvency and restructuring); Daniel Yelin, Hugo-Pierre Gagnon and Catherine De Laboursodière (corporate); Constantine Troulis, Lida Bucyk, Nana Amponsah and Maxime Laverdière (financial services); Robert Raizenne and Antoine Stébenne (tax); Karim Renno and Éric Préfontaine (litigation); Douglas Rienzo (pension and benefits); Peter Glossop and Kevin Glass (competition/antitrust) and Rod Davidge and Ilana Cohen (real estate); and a team from Simpson Thacher & Bartlett LLP that included Hyang-Sook Lee (bankruptcy and restructuring) and Marissa Wesely and Eli Isak (credit).

The first lien lenders were represented by a team from Weil, Gotshal & Manges LLP that included Andrew Colao, Sasha Shulzhenko, Sue Chen-Holmes and Young Lee (banking and financing) and Danielle Do, Hayward Majors and Irini Kalamakis (mergers and acquisitions); and a team from Blake, Cassels & Graydon LLP that included Milly Chow, Susan Grundy, Bernard Boucher and Beth Posno (restructuring and insolvency); Michael Harquail, Marc-Antoine La Rochelle, Aimee Yee, Camille Paulus and Alexis Levine (financial services); Kathleen Penny and Bruce Sinclair (tax); Julie Soloway (competition); Robert Fishlock (environmental); Natalie Bussière (labour and pensions); Marc-André Landry (litigation) and Carole Turcotte and Marie Sabourin (corporate).

The second lien lender was represented by a team from Goodmans LLP that included James Riley, Elisabeth Cleghorn and Leah Ramkaran (banking and finance); Brendan O'Neill (restructuring); Mitchell Sherman, Carrie Smit and Marisa Wyse (tax); Brenda Gosselin (corporate) and Jana Steele (pensions and benefits).

Air Canada was represented by its Assistant General Counsel, Corporate & Commercial, David Perez, a team from Heenan Blaikie LLP that included Keith Wilson, Joel Cabelli, Michael Hanlon and Marie-Josée Couture (financial services); a team from Stikeman Elliott LLP that included Gary Nachshen (pension and benefits) and Sterling Dietze, François Ouimet and Marie-Aude Gagnon Rousseau (financial services); and a team from Bennett Jones LLP that included Stephen Bowman and Tracey Woo (tax).