VANCOUVER, Sept. 5, 2013 /PRNewswire/ - Avcorp Industries, Inc. (the "Company") reports that it has entered into a settlement agreement with the Cessna Aircraft Company ("Cessna") which settles all outstanding litigation between the Company and Cessna. The settlement requires payment by Cessna of USD27,964,513 in satisfaction of the judgement entered against Cessna from an arbitration award made on November 16, 2012. The settlement funds are due to the Company on September 6, 2013.
This settlement follows the original arbitration award wherein the arbitration panel awarded the Company damages in the amount of USD27,391,372, which, under the terms of an arbitration agreement between Cessna and the Company, was a final and binding award. On May 8, 2013, the United States District Court for the District of Kansas (the "District Court") entered a final judgement in the Company's favour on the arbitration award in the aggregate amount, including prejudgment interest, of USD28,464,513.
A notice of appeal and a motion to stay execution was filed by Cessna on June 7, 2013 in the United States Court of Appeals for the Tenth Circuit from the judgement entered against Cessna on May 8, 2013 by the District Court. This settlement satisfies the judgement and will result in the dismissal of the outstanding appeal.
About AvcorpAvcorp 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 ROOIJ PRESIDENT and CHIEF EXECUTIVE OFFICER