Avcorp completes USD28.0m settlement of award from Cessna
VANCOUVER, Sept. 5, 2013 /PRNewswire/ - 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).
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 (www.sedar.com).
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.