VANCOUVER, Sept. 5, 2013 /CNW/ - Avcorp Industries, Inc. (the "Company")
reports that it has entered into a settlement agreement with the Cessna
Aircraft Company ("Cessna") which settles all outstanding litigation between
the Company and Cessna. The settlement requires payment by Cessna of
USD27,964,513 in satisfaction of the judgement entered against Cessna from
an arbitration award made on November 16, 2012. The settlement funds are due
to the Company on September 6, 2013.
This settlement follows the original arbitration award wherein the arbitration
panel awarded the Company damages in the amount of USD27,391,372, which, under
the terms of an arbitration agreement between Cessna and the Company, was a
final and binding award. On May 8, 2013, the United States District Court
for the District of Kansas (the "District Court") entered a final judgement in
the Company's favour on the arbitration award in the aggregate amount,
including prejudgment interest, of USD28,464,513.
A notice of appeal and a motion to stay execution was filed by Cessna on June
7, 2013 in the United States Court of Appeals for the Tenth Circuit from the
judgement entered against Cessna on May 8, 2013 by the District Court.
This settlement satisfies the judgement and will result in the dismissal of
the outstanding appeal.
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
This release should be read in conjunction with the Company's unaudited
financial statements contained in the Company's Annual Report and with the
quarterly financial statements and accompanying notes filed with Sedar
Certain statements in this release 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 extent to which the Company is
able to achieve savings from its restructuring plans; (b) uncertainty in
estimating the amount and timing of restructuring charges and related costs;
(c) changes in worldwide economic and political conditions that impact
interest and foreign exchange rates; (d) the occurrence of work stoppages and
strikes at key facilities of the Company or the Company's customers or
suppliers; (e) government funding and program approvals affecting products
being developed or sold under government programs; (f) cost and delivery
performance under various program and development contracts; (g) the adequacy
of cost estimates for various customer care programs including servicing
warranties; (h) the ability to control costs and successful implementation of
various cost reduction programs; (i) the timing of certifications of new
aircraft products; (j) the occurrence of further downturns in customer markets
to which the Company products are sold or supplied or where the Company offers
financing; (k) changes in aircraft delivery schedules or cancellation of
orders; (l) the Company's ability to offset, through cost reductions, raw
material price increases and pricing pressure brought by original equipment
manufacturer customers; (m) the availability and cost of insurance; (n) the
Company's ability to maintain portfolio credit quality; (o) the Company's
access to debt financing at competitive rates; and (p) uncertainty in
estimating contingent liabilities and establishing reserves tailored to
address such contingencies.
SOURCE Avcorp Industries Inc.
Contact:Sandi DiPrimo, Investor Relations Contact 604-587-4938
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CO: Avcorp Industries Inc.
ST: British Columbia
-0- Sep/05/2013 22:24 GMT
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