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May 2, 2013 /PRNewswire/ - Avcorp Industries Inc. ("Avcorp" or the "Company") reports that it has received a Memorandum and Order of the United States District Court for the District of
Kansas which heard the motion by Cessna Aircraft Company ("Cessna"), as filed by Cessna on
November 26, 2012, to vacate the arbitration award made on
November 16, 2012 in favour of the Company in the amount of
USD27.4 million. Cessna's motion to vacate was denied and the Court affirmed the award to the Company. In addition, the Court awarded post-award prejudgement interest at a rate of 10% per annum from
December 16, 2012 to the date of judgement. This prejudgement interest award totals approximately
USD1 million. The Court is expected to enter final judgement against Cessna in the amount of approximately
USD28.4 million on or about
May 8, 2013. Cessna could appeal the judgement to
the United States Court of Appeals for the Tenth Circuit by filing a notice within thirty days of entry of judgement.
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)MARK VAN ROOIJPRESIDENT and CHIEF EXECUTIVE OFFICERForward-Looking Statements
This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (
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 maintain 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.