Bromont, Quebec-based AAER Inc. has announced that pursuant to an order of the Quebec Superior Court issued on July 7, the initial order granted under the Companies' Creditors Arrangement Act (CCAA) in favor of AAER has now been further extended until Aug. 11, to allow for the filing of a plan of arrangement and for the holding of a creditors' meeting pursuant to the CCAA.
Subject to certain conditions, 7549032 Canada Inc., a wholly owned subsidiary of Pioneer Power Solutions Inc., has agreed to sponsor a plan of arrangement for the continuation of AAER.
Upon approval of the plan by AAER's creditors, Pioneer will contribute an amount of C$450,000 to be used to fund the plan and the filing of articles of reorganization. Under the plan, Pioneer will subscribe to the new AAER equity and will become the corporation's sole shareholder.
SOURCE: AAER Inc.