A sales process for the Air Ranch Airport in Okotoks can go ahead following a court ruling last week after airport owners sought creditor protection in February.
Approval to start the sales process, undertaken as part of an earlier agreement with creditors, was granted at Court of Kings Bench in Calgary on March 13.
Three companies are involved in ownership of the airport — Okotoks Air Ranch LP Inc., Okotoks Air Ranch GP Inc., and Okotoks Air Ranch Limited Partnership — that sought creditor protection under Canada’s Bankruptcy and Insolvency Act in filings on Feb. 20.
Carole Hunter, lawyer for the insolvent companies, said two businesses use the airstrip in a regular basis, and the airport’s operating costs far exceed the revenue.
“Unfortunately, the revenue from those two parties is frankly just not enough to sustain the operations,” Hunter said.
Bids will be accepted until April 21, and airport operations will continue during the sales process to give the other companies the opportunity to move their businesses.
“We could be looking at a sale of just the real property or a sale to somebody who is interested in continuing the operations of the airstrip,” Hunter said.
The court ruled that a month-long sales period is suitable, given the small pool of potential bidders.
Several earlier attempts to sell the airport were unsuccessful.
“There's likely not a huge number of people who will be interested in this property in terms of an airport operation,” Justice M.H. Bourque said.
A company related to the insolvent companies, Okotoks Air Ranch Inc., put forward a bid worth $3.47 million for the airport under an agreement that sets a minimum price for airport assets.
Hunter said it provides a floor price and is meant to solicit higher bids.
If there are no other bidders, assets would go to Okotoks Air Ranch Inc.
