Corporation to announce renewal of its credit facility and seek an
additional extension from debenture holders
MONTREAL, May 20 /CNW Telbec/ - ExelTech Aerospace Inc. (TSX-V: XLT), a
leading aircraft maintenance, repair and overhaul provider with operations in
Montreal and Quebec City, announced that its improvement initiatives have
continued to generate positive results in the fourth quarter. Quarterly
revenues have surpassed its budgeted levels and profitability has continued
the progress initiated in Q3.
ExelTech intends to release the financial results for the fiscal year
ended March 31, 2009 on or about June 23, 2009.
ExelTech announced that on May 19, 2009 it has successfully renewed its
$7 million credit facility with a Canadian chartered bank. This new credit
facility replaces the previous facility with the same bank and bears new
covenants which ExelTech expects to be in compliance with.
Extension of Maturity of Debentures and Financing Activities
The Corporation currently has outstanding approximately $2.3 million in
principal amount of convertible debentures due May 29, 2009 (the
"Debentures"). The maturity date of the Debentures was previously extended
from February 26, 2009 to the current maturity date. One of the conditions of
the renewed credit facility is that the Corporation must refinance the
Debentures with third party debt or equity. ExelTech is currently in
discussion with certain parties to provide financing in order to retire the
Debentures and for general working capital needs. No definitive agreements
with potential investors have been reached yet and there can be no assurance
that such agreements will be reached.
Accordingly, ExelTech has entered into discussions with holders of the
Debentures to extend the maturity date of the Debentures for a period of six
months, to November 30, 2009. Any proposed extension or amendment to the terms
of the Debentures is subject to the consent of the debenture holders in
accordance with the trust indenture creating the Debentures, the receipt of
board of directors approval and the approval of TSX Venture Exchange.
About ExelTech Aerospace
The third-largest commercial airframe Maintenance, Repair, and overhaul
(MRO) vendor in Canada, ExelTech Aerospace is listed on the TSX Venture
Exchange and trades under the symbol XLT. The Corporation holds Transport
Canada, US Federal Aviation Administration (FAA), European Aviation Safety
Agency (EASA) and Bermuda Department of Civil Aviation (BDCA) approvals to
maintain a range of aircraft and associated structures, components and
systems. Aircraft models serviced by ExelTech Aerospace include Embraer ERJ
145 family, EJet 170/190 family and Bombardier CRJ regional jets as well as
ATR-42 and 72, Bombardier Dash-8 and Saab 340 regional turboprops and Boeing
737 narrow bodies. ExelTech is also a member of the SuperJet International
Sukhoi authorized MRO Service Centers Network.
In the summer of 2008, ExelTech opened a purpose-built 153,000 square
feet (14,200 square meters) state-of-the-art maintenance facility at
Montreal's Pierre Elliott Trudeau International Airport where regional
aircraft are serviced. In additional to heavy maintenance, ExelTech Aerospace
offers a dedicated line maintenance facility servicing domestic and
international customers for Montreal's Trudeau International Airport.
With 310,000 square feet (28,800 square meters) of hangar, shop and
office space in three facilities at Montreal and Quebec City, and with
marketing offices in the US, ExelTech Aerospace provides maintenance repair
and overhaul services to airlines in Canada, the US and 25 other countries
around the world.
To learn more about ExelTech Aerospace Inc. (TSX-V: XLT), please visit
our website at www.exeltech-aerospace.com.
Certain statements made in this news release, including, without
limitation, statements relating to the Corporation's expectations concerning
future revenues and earnings, market conditions and the sufficiency of capital
and liquidity, may constitute forward-looking statements. These
forward-looking statements are subject to risks and uncertainties that may
cause future results to differ materially from those expected. Such risks
include, without limitation, period to period fluctuations of revenue and
operating expenses, technological, competition, environmental hazards,
intellectual property issues, dependence on key personnel, financing and
acquisition capabilities and exposure to foreign currency movements. These
risks and uncertainties are discussed in greater detail in the Risk Factors
section of the Corporation's Management Discussion and Analysis for the year
ended March 31, 2008. Moreover, actual results may differ materially from
expected results if known or unknown risks affect the business or if
information and analysis in this news release turn out to be inaccurate. As a
result, there can be no guarantee that any forward-looking statement will
Management disclaims any intention, and assumes no obligation, to update
any forward-looking statement, even if new information becomes available, as a
result of future events or for any other reason. Readers are urged to consider
these and other such factors carefully, and not place undue emphasis on
ExelTech's forward-looking statements.
Further information can be found in the disclosure documents filed by
ExelTech with the securities regulatory authorities, available at
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy of this release.
For further information:
For further information: Sylvain Duval, President and Chief Operating
Officer, (514) 631-8999 ext. 2275, firstname.lastname@example.org