ACE Aviation Shares Skid After Vote Postponed

Shares in Air Canada parent ACE Aviation skidded 8 percent on Tuesday after the company postponed a shareholder meeting to approve its liquidation plan, citing weak market conditions.

ACE's A-series shares fell 51 Canadian cents to CAD$5.59 on the Toronto Stock Exchange. Air Canada climbed 3 Canadian cents, or 3.7 percent, to 85 Canadian cents after tumbling to a record low a day earlier.

The company gave no new date for the special meeting, which had been scheduled for April 7 after being pushed back once before.

ACE said in a statement late on Monday it was considering all alternatives to arrive at an "optimal outcome," casting a cloud over liquidation plans that have met with opposition from some shareholders and unions at Canada's biggest airline.

ACE, which had a fourth-quarter net loss of CAD$633 million (USD$510.5 million) amid the industry downturn, has been preparing to distribute its assets, including its 75 percent of Air Canada and 27.8 percent of aircraft maintenance and repair firm Aveos Fleet Performance, to shareholders and wind up its business.

One large shareholder, West Face Capital, has said it plans to vote against the initiative. Air Canada's unions, meanwhile, have demanded that Ottawa step in to force ACE to fund their pension plan.