HALIFAX, April 13 /CNW/ - Vector Aerospace Corporation ("Vector")
announced today that it has agreed to a settlement with Mark Dobbin (a former
executive officer of Vector until November 2003) in the context of the
previously disclosed litigation commenced by Mr. Dobbin and two other former
executive officers of Vector (Paul Conway and Maxwell Parsons) against Vector
and one of its subsidiaries seeking termination payments and benefits under
their employment arrangements. The litigation has been vigorously defended and
a counterclaim was issued.
After reviewing the proceedings to date, Vector and Mr. Dobbin have
agreed to a final settlement of their respective claims against each other.
The final settlement reached involved a settlement payment of $5,200,000 to
Mr. Dobbin. Vector currently has booked reserves to cover the payment of the
latter amount and, accordingly, the payment will have no affect on its
earnings from continuing operations before income taxes.
The litigation involving Messrs. Conway and Parsons continues and is not
affected by the above settlement.
Vector Aerospace Corporation is an independent provider of aviation
repair and overhaul services. Through facilities in Canada, the United States
and the United Kingdom it provides services to commercial and military
customers for various types of gas turbine engines, components and helicopter
airframes. It also provides information technology solutions to an
international customer base. Principal operations include Atlantic Turbines,
Sigma Aerospace, ACROHELIPRO Global Services and Pathix. The Company has
approximately 1,100 employees.
For further information:
For further information: Donald K. Jackson, Chairman, President & CEO,
Toronto, Ontario, (416) 925-1143, Randal L. Levine, Senior Vice-President and
Chief Financial Officer, Toronto, Ontario, (416) 925-1143,