Avcorp ceases litigation with Bombardier over Termination for Convenience - amended
Common Stock Listed
Trading Symbol: AVP
VANCOUVER, Jan. 25, 2013 /CNW/ - Avcorp Industries Inc. ("Avcorp" or the "Company") announces today that it has ceased any and all litigation against Bombardier Inc. ("Bombardier") which was commenced in 2010 by the Company in the Superior Court of Quebec, in connection with the termination by Bombardier of production work relating to the CRJ700 aircraft program. The Company and Bombardier agreed that each will be responsible for their respective costs and Bombardier has not paid any consideration to Avcorp to dismiss the case. Avcorp is actively pursuing participation in Bombardier's supply chain for several of Bombardier's programs. The Company currently produces components for the Bombardier Challenger 605 and Challenger 850 business jets as well as composite floorboards for the CRJ, Q400, and Learjet programs. The Company looks forward to continuing its valued relationship as a supplier to Bombardier, the leading Canadian aerospace manufacturer.
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 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.For further information:
Contact: Sandi DiPrimo, Investor Relations Contact 604-587-4938