Avcorp update on financial restructuring

    Common Stock Listed
    Trading Symbol: AVP

    VANCOUVER, June 22 /CNW/ - Avcorp Industries Inc. ("Avcorp" or the
"Company") (TSX:AVP) announced today that, in connection with the previously
announced investment agreement dated June 15, 2009 (the "Investment
Agreement") between the Company and Panta Holdings B.V. ("Panta") for a
subscription of common shares and convertible debentures having an aggregate
subscription price of Cdn.$7.5 million, the Company did not obtain the
necessary Toronto Stock Exchange ("TSX") approval for the financial hardship
exemption from the TSX requirement for shareholder approval. Because the
private placement and debenture issue was conditional upon TSX approval being
obtained, the Company has extended the date for completion of certain
diligence conditions to June 26, 2009, and is currently in discussions with
Panta with respect to alternatives to the original financing proposal. There
can be no assurance that a revised restructuring proposal will be agreed with
Panta and the completion of any financing with Panta will be subject to a
number of conditions, including final TSX approval. Panta advanced an interim
loan of approximately Cdn.$1.6 million on June 15, 2009 which is secured as a
charge subordinate to all existing encumbrances.
    The Company also announced the cancellation of its annual general meeting
originally scheduled for June 25, 2009. A new annual general meeting date will
be scheduled and held following resolution of the Company's current financial

    About Avcorp

    Avcorp designs and builds major airframe structures for some of the
world's leading aircraft companies, including Boeing, Bombardier, and Cessna.
With more than 50 years of experience, approximately 500 skilled employees and
354,000 square feet of facilities, 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.

    "Marcus Van Rooij"


    Forward-Looking Statements

    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 ma intain
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.

For further information:

For further information: Sandi DiPrimo, Investor Relations Contact,
(604) 587-4938

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