Nunatsiavut Group of Companies President and CEO Chris Webb has released the following statement:
“At the close of business on May 26, 2020, Universal Helicopters Newfoundland and Labrador LP made a decision to cease operations. The decision impacts Universal Helicopters and its subsidiaries, collectively known as Universal Helicopters.”
NGC, through a 40-percent investment by the Labrador Inuit Capital Strategy Trust, obtained a minority stake in the helicopter services company in the fall of 2013. Unfortunately, the investment did not work out as the Trust had intended. The company performed poorly in 2019. This spring, the COVID-19 pandemic and the resulting general economic downturn compounded the company’s problems.
Since September 2019, Universal Helicopters’ management and Board of Directors explored various options to stay in business, including discussing potential solutions with its banks. Labrador Inuit Capital Strategy Trust supported the company’s efforts in this regard. Those efforts were not successful.
The financial impact of the decision upon NGC and its affiliates will remain uncertain until the proceeds of the Partnership assets are determined.
For further information, contact Chris Webb, NGC President and CEO at 709-896-8505.