SYMBOL: NAS Common Shares
TORONTO, May 22 /CNW/ - Northstar Aerospace, Inc. ("Northstar") and its
wholly-owned subsidiary, Northstar Aerospace (Canada) Inc. ("Northstar Canada"
and collectively, the "Company"), announced today that they have entered into
a settlement agreement with the plaintiffs in the previously announced
environmental class proceeding in the Ontario Superior Court of Justice. This
settlement will not affect Northstar Canada's ongoing remediation efforts.
The plaintiffs, all property owners in the neighbourhood adjacent to
Northstar Canada's facility in Cambridge, Ontario, sought damages for
diminution of property values and other losses associated with environmental
issues relating to the historical operation of the Cambridge facility. The
plaintiffs sought to certify the lawsuit as a class proceeding on behalf of
all property owners in the neighbourhood as at August 23, 2005.
Under the settlement agreement, which is subject to Court approval, funds
totalling approximately $5.05 million (all amounts in Canadian dollars) will
be established by Northstar Canada to address claims for alleged property
damage and legal costs. The payment terms include $2.05 million to be paid 30
days after the effective date of the settlement and $3.0 million to be paid by
way of a promissory note due within three years following its issuance (also
to take place 30 days after the effective date of the settlement). The
promissory note can be repaid in cash or, subject to regulatory approval, in
Northstar common shares.
The Company does not admit any liability and under the settlement, would
receive full and final releases for the claims made in the proceeding and the
plaintiffs' lawsuit will be dismissed with prejudice.
In addition to Court approval, the settlement agreement is also subject
to early termination provisions dependent upon the level of support for it
among the class members and the number of property owners who choose to opt
out of the class.
Northstar Aerospace, Inc. (www.nsaero.com) is North America's leading
independent manufacturer of flight critical gears and transmissions. Northstar
Aerospace is a public company (TSX:NAS) with operating subsidiaries in the
United States and Canada. Its principal products include helicopter gears and
transmissions, accessory gearbox assemblies, rotorcraft drive systems and
other machined and fabricated parts. It also provides maintenance, repair and
overhaul of helicopter engines and transmissions. The Company's executive
offices are located in Chicago, Illinois. Its plants are located in Chicago,
Illinois; Phoenix, Arizona; Stroud, Oklahoma; Anderson, Indiana; and Milton
and Windsor, Ontario.
Forward Looking Statements
Certain information included in this news release may constitute
forward-looking information within the meaning of securities laws. In some
cases, forward-looking information can be identified by terminology such as
"may", "will", "should", "expect", "plan", "anticipate", "believe",
"estimate", "predict", "potential", "continue" or the negative of these terms
or other similar expressions concerning matters that are not historical facts.
Such forward-looking information reflects management's current beliefs and is
based on information currently available to the Company. Forward-looking
information involves significant risks and uncertainties. A number of factors
could cause actual events or results to differ materially from the events
discussed in the forward-looking information including, without limitation,
risks related to early termination provisions, court and regulatory approvals.
These factors should not be considered exhaustive. In addition, in evaluating
this information, investors should specifically consider various factors,
including the risks outlined under "Risks and Uncertainties" in the Company's
Management's Discussion and Analysis for the year ended December 31, 2008,
which may cause actual events or results to differ materially from any forward
looking statement. Although the forward-looking information is based on what
the Company considers to be reasonable assumptions based on information
currently available to it, there can be no assurance that actual events or
results will be consistent with this forward-looking information, and
management's assumptions may prove to be incorrect. This forward-looking
information is made as of the date of this news release, and the Company does
not assume any obligation to update or revise them to reflect new events or
circumstances. Undue reliance should not be placed on forward-looking
For further information:
For further information: Scott Langdon, (416) 234-5808,