CHICAGO, June 1, 2012 /CNW/ - Northstar Aerospace, Inc (NAS:TSX) (the "Corporation") announced today that a Director's Order (the "Order") has been issued by the Ontario Ministry of the Environment ("MOE") to its subsidiary, Northstar Aerospace (Canada), Inc. ("Northstar Canada") and the Corporation, in respect of Northstar Canada's Cambridge, Ontario property. As previously announced by the Corporation, an initial Director's Order was issued by the MOE on March 15, 2012 which documented and formalized the investigation, mitigation and remediation project currently underway or planned by Northstar Canada in respect of contamination at and near the property. The Order requires the Corporation and Northstar Canada to provide financial assurance for the environmental remediation program in the amount of Cdn. $10,352,906 to the MOE by June 6, 2012 or such later date agreeable to the MOE. The Corporation is evaluating its and Northstar Canada's options for responding to the Order.
The Corporation is continuing its process of exploring and evaluating strategic alternatives for the Corporation. No assurances can be given that any proposal will result in a transaction or that any such transaction will result in value for all of the various stakeholders of the Corporation after the repayment of secured debt. As previously disclosed in the notes to the Corporation's interim financial statements as of September 30, 2011, significant doubt remains regarding the Corporation's ability to continue as a going concern. The Corporation's common shares were delisted from the TSX on May 28, 2012.
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 components and transmissions. The Corporation's executive offices are located in Chicago, Illinois. Its plants are located in Chicago, Illinois; Phoenix, Arizona; Milton and Windsor, Ontario, Canada.
Forward Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this press release, including the statements in the press release relating to the initial Director's Order and the Second Order, the statements relating to the Corporation evaluating its and Northstar Canada's options for responding to the Second Order, the statements relating to the process of exploring and evaluating strategic alternatives for the Corporation, the statements relating to the Corporation's financial position and ability to continue as a going concern may be or include forward looking statements. Forward-looking information contained herein is based upon a number of assumptions and actual future events may differ materially depending on a variety of factors, including the ability of Northstar Canada and the Corporation to execute the Second Order, its ability to cure or resolve claimed breach of obligations under customer contracts, its ability to successfully amend its credit agreement, its ability to successfully extend the terms of the forbearance agreements or the process of exploring strategic alternatives to result in any specific transaction. Other important factors that could cause actual results to differ materially from the Corporation's expectations (together with the cautionary statements in the previous sentence, "Cautionary Statements") are included in the Corporation's Consolidated Financial Statements for the Years Ended December 31, 2010 and 2009 - Management's Discussion and Analysis - Risks and Uncertainties, the Corporation's Annual Information Form filed on March 25, 2011, under the heading of Risks and Uncertainties, the Corporation's Consolidated Interim Financial Statements for the three and nine months ended September 30, 2011, and 2010 under the heading Basis Of Preparation And Adoption Of IFRS - Going Concern and in the related Management's Discussion and Analysis under the heading Risks and Uncertainties and the heading Going Concern. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. All information contained in this press release and subsequent written and oral forward-looking statements attributable to the Corporation or persons acting on behalf of the Corporation are expressly qualified in their entirety by the Cautionary Statements. The Corporation disclaims any intentions or obligation to update or revise any forward looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.
For further information:
David Anderson, General Counsel at [email protected] or 708.728.2055