Bar C Posted January 20, 2009 Report Share Posted January 20, 2009 Perhaps just in the nic of time!!!!! I'll bet ya a lot of relived dudes at that place..... N.W.T. to lend $34 million to helicopter operator Discovery Air 9 hours ago LONDON, Ont. — The Northwest Territories Opportunities Fund has agreed to lend $34 million to Discovery Air (TSX:DA.A), which operates Great Slave Helicopters, Air Tindi and Discovery Mining Services for the mining and resource sectors in northern Canada. The money will refinance $33 million of debt that matures Feb. 1. The new loan has a two-year term and bears interest at 10 per cent per year. It's repayable in one balloon principal amount at maturity. Discovery Air also has received an extension of the expiry date of its operating line of credit to January 23, 2009 at a reduced borrowing limit of $5 million. Great Slave Helicopters, a wholly owned subsidiary of Discovery, provides aviation services to private-sector companies and governments operating in mineral exploration, mining, wildlife services, forest fire suppression, oil and gas exploration, power line construction and tourism. Air Tindi's planes provide scheduled and chartered passenger and air cargo services to private sector companies while Discovery Mining Services provides remote exploration camps and other services to diamond and mineral exploration companies. For the nine months ended Oct. 31, Discovery Air had $132 million in revenue, up from $103 million in the year-earlier comparable period. Net earnings fell to $8.8 million from $12.3 million, with the biggest drop occurring in the third quarter of fiscal 2009. In the three months ended Oct. 31, Discovery earned $2.6 million or two cents per share, down from $5.9 million or five cents per share in the third quarter of fiscal 2008. The company said in its analysis of the third quarter that Great Slave had been a major contributor to the reduced profitability of the company. "Great Slave had substantially increased its infrastructure earlier in the season and to a much larger extent than the prior year in light of indications that fiscal 2009 demand would surpass that of 2008, which was a record year for Great Slave," the company said in its third-quarter report. "Unfortunately, with the highly seasonal nature of its business operations, it was unable to reduce the resulting overhead costs as rapidly as the demand for aviation services weakened. This led to operating costs being much higher than the actual levels of flight activity warranted." Discovery Air shares traded Monday at 30 cents, up six cents from Friday's closed but down Quote Link to comment Share on other sites More sharing options...
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.