Chrono Group under receivership: Canadian aviation group in financial difficulties
Chrono Group, a major provider of charter flights and air freight in Canada, has been placed under receivership. This decision, made on October 18, 2024 by the Quebec Superior Court, reflects the company's increasing financial difficulties. Citing the Companies' Creditors Arrangement Act, the court appointed Deloitte as the group's administrator, which was no longer able to meet its obligations to creditors due to ongoing financial strains. The decision has far-reaching consequences for Chrono Group and its creditors and represents a turning point for the Canadian aviation company, which was previously considered an integral part of the Canadian charter and freight market. Causes of the financial crisis: litigation and market conditions There are several factors behind Chrono Group's problems. Of particular importance is an ongoing legal dispute with Canadian competitor Nolinor Aviation. The legal dispute revolves around lucrative contracts to supply remote iron mines in northern Canada. These mines, which are located in areas that are difficult to access, are of strategic importance to the Chrono Group and also to Nolinor, as the supply of these mines represents a stable and reliable source of income. The conflict and the associated uncertainties have so far made it impossible for the Chrono Group to secure the additional financial resources it needs. The financing problem is a serious obstacle, especially for a charter company such as Chrono Aviation, as the capital structure of an aviation company is heavily dependent on predictable income in order to maintain an extensive and costly fleet. According to the latest reports, the Chrono Group has a fleet of 14 aircraft. This fleet includes both smaller aircraft, such as