MONTREAL, April 30 /CNW Telbec/ - ExelTech Aerospace Inc. (TSX Venture: XLT) (the "Corporation") announced today that RSM Richter Inc., in its capacity as receiver to the assets of ExelTech Canada Inc., the wholly-owned subsidiary of the Corporation ("ExelTech Canada"), has completed the sale of certain specified equipment, tooling and inventory of ExelTech Canada located in its two Montreal hangars and its Quebec City facility, as well as certain of its office furniture and computer equipment to Pemco World Air Services (Canada) Inc. ("Pemco"). The purchase price for the transaction is $1,200,000, and Pemco has agreed to pay the Receiver an additional $400,000 if certain conditions are met. The proceeds of sale will be used to pay down indebtedness owed to the Corporation's senior lender and certain related transaction costs. The Corporation obtained an approval and vesting order from the Superior Court of Quebec authorizing the transaction with Pemco.
In addition, the Corporation announced today that it has accepted an offer to sell its hangar located at 1200 Pitfield Blvd., in Ville Saint-Laurent. The transaction is subject to due diligence and customary closing conditions. Completion of the transaction is also conditional upon the obtaining of an approval and vesting order from the Superior Court of Quebec. There is no assurance that the Corporation will obtain the required approval and vesting order or that the transaction will be completed. The proceeds of sale, if the transaction is completed, is expected to be primarily used by the Corporation to pay down the indebtedness owed to its mortgage lender as well as related transaction costs.
RSM Richter Inc. will post the Court filings and other information relating to the Corporation on its website.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE EXELTECH AEROSPACE INC.
For further information: For further information: Gérard Moretti, Chief Financial Officer, (514) 631-8999 ext. 2406, firstname.lastname@example.org