Justice Mark Schrager of the Quebec Superior Court has approved the payment to some 2,665 retained and terminated employees of bankrupt aircraft maintenance company Aveos Fleet Performance of $5.8-million in unpaid wages, along with $450,000 in employer payroll contributions.
Each employee will be entitled to a maximum of $2,000.
The April 5 court order says no further priority claims can be asserted against Aveos under the Companies’ Creditors Arrangement Act.
In a separate order, the court has also sanctioned an agreement to allow Air Canada to repossess an A330 aircraft, engines, records and intellectual property held in an Aveos facility. In exchange, the airline would waive $2 million per month in rent and IT access.
At the time of its court filing for creditor protection, the airline had three planes being repaired in Aveos facilities in Montreal and Vancouver.