Common Stock Listed Toronto Trading Symbol: AVP
VANCOUVER, Nov. 19, 2012 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company" or "Avcorp") is pleased to report that it has received the determination of an appointed arbitration panel constituted to adjudicate outstanding issues relating to cost reimbursements and compensation payable to Avcorp in connection with the transition of Cessna Aircraft Company ("Cessna") production work back to Cessna and other suppliers. The transition of Cessna production work was first announced by the Company on December 17, 2010 and immediately following notification by Cessna, the Company had attempted to negotiate compensation payments as contemplated by the Cessna Strategic Alliance Agreement (the "SAA"). Only when negotiations and mediation were unsuccessful did the Company refer the matter to binding arbitration.
The binding arbitration award, delivered to the Company on November 16, 2012, determined that: the SAA was an exclusive agreement between Cessna and Avcorp; Cessna could not unilaterally transition production work from Avcorp; Avcorp had fulfilled the requirements of the SAA; and, Avcorp suffered damages as a result of Cessna transitioning production work from Avcorp. In addition, all counterclaims that were advanced by Cessna were denied. The quantum of damages was assessed by the arbitration panel at USD 27,391,372, which amount is payable to Avcorp within 30 days of the arbitration award.
About Avcorp Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, 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. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).(signed)