Avcorp awarded $27.4 million US in arbitration

Common Stock Listed  Toronto
Trading Symbol: AVP 
VANCOUVER, Nov. 19, 2012 /CNW/ - Avcorp Industries Inc. (TSX: AVP) (the 
"Company" or "Avcorp") is pleased to report that it has received the 
determination of an appointed arbitration panel constituted to adjudicate 
outstanding issues relating to cost reimbursements and compensation payable to 
Avcorp in connection with the transition of Cessna Aircraft Company ("Cessna") 
production work back to Cessna and other suppliers. The transition of Cessna 
production work was first announced by the Company on December 17, 2010 and 
immediately following notification by Cessna, the Company had attempted to 
negotiate compensation payments as contemplated by the Cessna Strategic 
Alliance Agreement (the "SAA"). Only when negotiations and mediation were 
unsuccessful did the Company refer the matter to binding arbitration. 
The binding arbitration award, delivered to the Company on November 16, 2012, 
determined that: the SAA was an exclusive agreement between Cessna and Avcorp; 
Cessna could not unilaterally transition production work from Avcorp; Avcorp 
had fulfilled the requirements of the SAA; and, Avcorp suffered damages as a 
result of Cessna transitioning production work from Avcorp. In addition, all 
counterclaims that were advanced by Cessna were denied. The quantum of damages 
was assessed by the arbitration panel at USD 27,391,372, which amount is 
payable to Avcorp within 30 days of the arbitration award. 
About Avcorp
Avcorp designs and builds major airframe structures for some of the world's 
leading aircraft companies, including BAE Systems, Boeing, and Bombardier. 
With more than 50 years of experience, over 400 skilled employees and 354,000 
square feet of facilities in Delta BC and Burlington ON, Avcorp offers 
integrated composite and metallic aircraft structures to aircraft 
manufacturers, a distinct advantage in the pursuit of contracts for new 
aircraft designs, which require lower‐cost, light weight, strong, reliable 
structures. Our Burlington location also offers composite repairs for 
commercial aircraft. Avcorp is a Canadian public company traded on the Toronto 
Stock Exchange (TSX:AVP). 
(signed)  
MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER 
Forward-Looking Statements 
This management discussion and analysis should be read in conjunction with the 
Company's audited financial statements. Certain statements in this report 
and other oral and written statements made by the Company from time to time 
are forward-looking statements, including those that discuss strategies, 
goals, outlook or other non-historical matters; or projected revenues, income, 
returns or other financial measures. These forward-looking statements are 
subject to risks and uncertainties that may cause actual results to differ 
materially from those contained in the statements, including the following: 
(a) the ability of the Company to renegotiate its debt agreements under which 
it is in default; (b) the extent to which the Company is able to achieve 
savings from its restructuring plans; (c) uncertainty in estimating the amount 
and timing of restructuring charges and related costs; (d) changes in 
worldwide economic and political conditions that impact interest and foreign 
exchange rates; (e)the occurrence of work stoppages and strikes at key 
facilities of the Company or the Company's customers or suppliers; (f) 
government funding and program approvals affecting products being developed or 
sold under government programs; (g) cost and delivery performance under 
various program and development contracts; (h)the adequacy of cost estimates 
for various customer care programs including servicing warranties; (i) the 
ability to control costs and successful implementation of various cost 
reduction programs; (j) the timing of certifications of new aircraft products; 
(k) the occurrence of further downturns in customer markets to which the 
Company products are sold or supplied or where the Company offers financing; 
(l) changes in aircraft delivery schedules or cancellation of orders; (m) the 
Company's ability to offset, through cost reductions, raw material price 
increases and pricing pressure brought by original equipment manufacturer 
customers; (n) the availability and cost of insurance; (o) the Company's 
ability to maintain portfolio credit quality; (p) the Company's access to debt 
financing at competitive rates; and (q) uncertainty in estimating contingent 
liabilities and establishing reserves tailored to address such contingencies. 
Contact:Sandi DiPrimo, Investor Relations Contact 604-587-4938 
For further information about Avcorp Industries Inc. please visit our  
website. www.avcorp.com 
SOURCE: Avcorp Industries Inc. 
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CO: Avcorp Industries Inc.
ST: British Columbia
NI: AIR LAW VERDICTS LAWVIEWS  
-0- Nov/19/2012 14:14 GMT
 
 
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