Northstar Obtains Extension of CCAA Stay Period, Credit Facilities
Northstar Aerospace, Inc. announced that the Ontario Superior Court of Justice (Commercial Division), which is supervising the proceedings of the corporation and certain of its Canadian affiliates under the Companies’ Creditors Arrangement Act commenced on June 14, 2012 (the CCAA Proceedings) granted an Order on August 2, 2012 extending the stay of proceedings against Northstar through October 31, 2012. The corporation has also obtained an amendment to the debtor-in-possession (DIP) financing with its senior and junior DIP lenders to extend the maturity date of the related financings through August 20, 2012.
As previously announced, Northstar entered into an asset purchase agreement with Heligear Acquisition Co. (as U.S. Purchaser) and Heligear Canada Acquisition Corporation (as Canadian Purchaser), each affiliates of Wynnchurch Capital, Ltd, which provides for the sale of substantially all of the operating assets of Northstar, together with the assumption of certain liabilities, subject to customary adjustments. Northstar continues to work with the Purchasers to accomplish a Closing of the transaction as soon as possible after the satisfaction or waiver of all conditions precedent to the Closing. Based on the anticipated proceeds it is expected that there will be insufficient proceeds to fully repay Northstar’s secured lenders.
Northstar Aerospace, Inc. is North America’s independent manufacturer of flight critical gears and transmissions.
Previously on abfjournal.com: