Se cond Re portof Nov e m be r16, 20 18 K SV K ofm a n Inc. a s C C A A Monitorof G re a tSla v e H e licopters Ltd. C ontents Pa ge 1.0 Introduction..........................................................................................................1 1.1 Purpose s ofthisRe port............................................................................1 1.2 Re strictions ..............................................................................................2 1.3 C urre ncy ..................................................................................................3 2.0 B a ck ground .........................................................................................................3 3.0 SISP....................................................................................................................4 3.1 C a pital C a na da Ltd..................................................................................6 3.2 SISP Re sults............................................................................................6 4 .0 Transa ction..........................................................................................................6 4 .1 A ircraftSa le toD e lta ................................................................................7 4 .2 Re com m e nda tion.....................................................................................8 4 .3 A nticipa ted Tim e line toC losing ................................................................9 4 .4 Se a ling.....................................................................................................9 5.0 C a sh Flow Fore ca st.............................................................................................9 6.0 Stay E xtension...................................................................................................10 7.0 Othe rMa tters.....................................................................................................10 7.1 Re im burse m e nta gre e m e nt....................................................................10 7.2 C hile a n Ope rations ................................................................................11 8.0 Profe ssiona l Fe e s..............................................................................................11 9.0 A nticipa ted Ne xtSteps inthe se Proce e dings.....................................................11 10 .0 C onclusion a nd Re com m e nda tion.....................................................................12 A ppe ndix Ta b Initial Orde rda ted Se ptem be r4 , 20 18.......................................................................A FirstRe portofthe Monitorda ted Se ptem be r11, 20 18(w ithouta ppe ndice s) .............B SISP A pprov a l Orde rda ted Se ptem be r14 , 20 18.......................................................C Pre ss Re le a se da ted Se ptem be r14 , 20 18................................................................D E xtension le ttera nd notice da ted Octobe r15, 20 18...................................................E Le tterda ted Octobe r15, 20 18toprospe ctive purcha se rs...........................................F A sse tPurcha se A gre e m e ntda ted Nov e m be r8,20 18(re da cted v e rsion) ..................G Offerda ted Octobe r31, 20 18from D e lta H e licoptersLtd.(re da cted v e rsion) ............H C a sh Flow Fore ca sta nd Ma na ge m e ntRe porton C a sh Flow ......................................I Monitor’s Re porton C a sh Flow Fore ca st....................................................................J Re im burse m e ntA gre e m e ntda ted Octobe r9,20 18...................................................K C onfidential A ppe ndix Ta b OfferSum m a ry...........................................................................................................1 A sse tPurcha se A gre e m e ntda ted Nov e m be r8,20 18(unre da cted v e rsion) ...............2 Offerda ted Octobe r31, 20 18from D e lta H e licoptersLtd.(unre da cted v e rsion) .........3 ksv advisory inc. Pa ge iofi C OURT FILE NO.:C V-18-60 4 4 34 -00 C L ONTARIO SUPE RIOR C OURT OF JUSTICE (C OMME RC IA L LIST) INTH E MA TTE R OF TH E COMPANIES' CREDITORS ARRANGEMENT ACT, R.S.C.1985, c.C -36, A S A ME ND E D A ND INTH E MA TTE R OF A PLA N OF C OMPROMISE OR A RRA NG E ME NT OF GRE A TSLA VE HE LICOPTE RSLTD . SE C OND RE PORT OF K SV K OFMA N INC .A S MONITOR Nov e m be r16, 20 18 1.0 Introduction 1. Pursuanttoa n orde rofthe OntarioSupe riorC ourtofJustice (C om m e rcial List) (the “C ourt”) m a de on Se ptem be r4 , 20 18(the “Initial Orde r”), G re a tSla v e H e licoptersLtd. (the “C om pa ny”) w a s granted protection unde r the C ompanies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, a s a m e nde d (the “C C A A ”), a nd KSV Kofm a n Inc. (“KSV”) w a s a ppointed m onitor (the “Monitor”). A copy ofthe Initial Orde r is a ttache d a s A ppe ndix“A ”. 2. The principa l purpose ofthese re structuring proce e dings is to cre a te a stabilize d e nv ironm e nttoconducta C ourt-a pprov e d sa le a nd inv e stm e ntsolicitation proce ss (“SISP”) forthe C om pa ny’s busine ss a nd a sse ts. 3. KSV isfiling thisre port(“Re port”) initsca pa citya s Monitor. 1.1 Purpose s ofthisRe port 1. The purpose s ofthisRe portare to: a ) prov ide ba ck ground inform a tion a boutthe C om pa ny a nd these proce e dings; b) sum m a rize the re sultsofthe SISP ca rried outby the Monitorina ccorda nce w ith a C ourtorde rm a de on Se ptem be r14 , 20 18(the “SISP A pprov a l Orde r”); c) sum m a rize the term s ofa n a sse tpurcha se a gre e m e ntda ted Nov e m be r8,20 18 (the “A PA ”) pursuanttow hich 110 88211 C a na da C orp.(the “Purcha se r”) ha s a gre e d topurcha se substantially a ll ofthe C om pa ny’s busine ss a nd a sse tsa nd a ssum e ce rtainliabilities (the “Transa ction”); d) sum m a rize a propose d sa le toD e lta H e licoptersLtd.(“D e lta”) ofthe C om pa ny’s 1988E urocopter 350 B 2, w ith a C a na dian Re gistration num be r C -GJG K (the “A ircraft”), w hich a sse tisnotbe ing purcha se d by the Purcha se r; ksv advisory inc. Pa ge 1 of12 e ) re porton the C om pa ny’s ca sh flow projection forthe pe riod Nov e m be r26, 20 18 toD e ce m be r30 , 20 18(“C a sh Flow Fore ca st”); f) discuss the re a sons toe xtend the stay ofproce e dings from Nov e m be r23, 20 18 toJa nua ry18,20 19; g) de tailthe fe e s a nd disburse m e nts ofthe Monitora nd its counse l, G oodm a ns LLP (“G oodm a ns”), from the com m e nce m e nt of these proce e dings to Octobe r31, 20 18,a nd se e k a pprov a l ofsa m e ;and h) re com m e nd tha tthisH onourable C ourtm a k e one orm ore orde rs: i. a pprov ing the A PA a nd the Transa ction contem pla ted there in; ii. a pprov ing the sa le ofthe A ircrafttoD e lta; iii. a uthorizing the C om pa ny toe nterintoa ny othera ncilla rydocum e nts a nd a gre e m e nts re quire d tocom ple te the Transa ction a nd/orthe sa le ofthe A ircrafttoD e lta; iv. v e sting inthe Purcha se rthe C om pa ny’s right,title a nd intere stina nd tothe A sse ts(a s de fine d inthe A PA ), fre e a nd cle a rofa ll liens, cha rge s, se curity intere stsa nd e ncum brance s, othe rtha n the Pe rm itted E ncum brance s; v . v e sting inD e lta the C om pa ny’s right,title a nd intere stina nd tothe A ircraft, fre e a nd cle a rofa ll liens, cha rge s, se curityintere stsa nd e ncum brance s; v i. e xtending the stay ofproce e dings from Nov e m be r23, 20 18toJa nua ry18, 20 19; v ii. a pprov ing the fee s a nd disburse m e ntsofthe Monitora nd G oodm a ns from the com m e nce m e ntofthe se proce e dings toOctobe r31, 20 18; v iii. se a ling the confide ntial a ppe ndice s tothis Re porton the term s se t out be low;and ix. a pprov ing thisRe porta nd the Monitor’s a ctivities de scribe d he re in. 1.2 Re strictions 1. In pre pa ring this Re port, KSV ha s re lied upon the C om pa ny’s una udited fina ncial inform a tion, including ce rtain of its books a nd re cords, a nd discussions w ith the C om pa ny’s m a na ge m e nt, the C om pa ny’s counse l a nd re pre se ntative s ofC la irve st G roup Inc.a nd itsa ffiliates, including ce rtainfunds m a na ge d by C la irve stG roup Inc. (“C la irve st”), the C om pa ny’s la rge stse cure d cre ditora nd indire ctsha re holde r. KSV ha s nota udited, re v iew e d orothe rwise v e rified the a ccuracy orcom ple tene ss ofthe inform a tion in a m a nne r tha t w ould com ply w ith G e ne rally A cce pted A ssurance Standa rds pursua nttothe C ha rtere d Professiona l A ccountantsofC a na da H a ndbook. ksv advisory inc. Pa ge 2 of12 2. KSV e xpre sse s no opinion orother form ofa ssurance w ith re spe cttothe fina ncial inform a tion pre se nted inthisRe portorre lied upon by KSV inpre pa ring thisRe port.