VANCOUVER,
Dec. 7, 2012 /PRNewswire/ - Avcorp
Industries Inc. (the "Company" or "Avcorp") reports that it has
received notice of a complaint filed by the Cessna Aircraft Company
("Cessna") in the United States District Court (Kansas) pursuant to which Cessna seeks to
vacate the November 16, 2012
arbitration award in favour of the Company. The arbitration panel
awarded Avcorp $27.4 million, which,
under the terms of the arbitration agreement between Cessna and
Avcorp, is a final and binding award. It is the Company's belief
and position that the complaint made by Cessna does not satisfy the
narrow legal grounds on which the arbitration award could be
vacated. The complaint was filed by Cessna on November 26, 2012 and the Company is required to
respond within 90 days. The Company intends to vigorously pursue
the confirmation of the arbitration award and the dismissal of
Cessna's motion to vacate with the U.S. District Court.
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.
SOURCE Avcorp Industries Inc.