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Last updated on April 16, 2014 at 13:39 EDT

Avcorp receives notice of complaint from Cessna Aircraft Company

December 7, 2012

VANCOUVER, Dec. 7, 2012 /PRNewswire/ – Avcorp Industries Inc. (the “Company” or
“Avcorp”) reports that it has received notice of a complaint filed by
the Cessna Aircraft Company (“Cessna”) in the United States District
Court (Kansas) pursuant to which Cessna seeks to vacate the November
16, 2012 arbitration award in favour of the Company. The arbitration
panel awarded Avcorp $27.4 million, which, under the terms of the
arbitration agreement between Cessna and Avcorp, is a final and binding
award. It is the Company’s belief and position that the complaint made
by Cessna does not satisfy the narrow legal grounds on which the
arbitration award could be vacated. The complaint was filed by Cessna
on November 26, 2012 and the Company is required to respond within 90
days. The Company intends to vigorously pursue the confirmation of the
arbitration award and the dismissal of Cessna’s motion to vacate with
the U.S. District Court.

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)

MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER

Forward-Looking Statements

This management discussion and analysis should be read in conjunction
with the Company’s audited financial statements. Certain statements in
this report 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 ability of the
Company to renegotiate its debt agreements under which it is in
default; (b) the extent to which the Company is able to achieve savings
from its restructuring plans; (c) uncertainty in estimating the amount
and timing of restructuring charges and related costs; (d) changes in
worldwide economic and political conditions that impact interest and
foreign exchange rates; (e) the occurrence of work stoppages and
strikes at key facilities of the Company or the Company’s customers or
suppliers; (f) government funding and program approvals affecting
products being developed or sold under government programs; (g) cost
and delivery performance under various program and development
contracts; (h) the adequacy of cost estimates for various customer care
programs including servicing warranties; (i) the ability to control
costs and successful implementation of various cost reduction programs;
(j) the timing of certifications of new aircraft products; (k) the
occurrence of further downturns in customer markets to which the
Company products are sold or supplied or where the Company offers
financing; (l) changes in aircraft delivery schedules or cancellation
of orders; (m) the Company’s ability to offset, through cost
reductions, raw material price increases and pricing pressure brought
by original equipment manufacturer customers; (n) the availability and
cost of insurance; (o) the Company’s ability to maintain portfolio
credit quality; (p) the Company’s access to debt financing at
competitive rates; and (q) uncertainty in estimating contingent
liabilities and establishing reserves tailored to address such
contingencies.

SOURCE Avcorp Industries Inc.


Source: PR Newswire