VANCOUVER, Jan. 24, 2013 /CNW/ - Avcorp Industries Inc. ("Avcorp" or the
"Company") announces today that it has ceased any and all litigation
against Bombardier Inc. ("Bombardier") which was commenced in 2010 by
the Company in the Superior Court of Quebec, in connection with the
termination by Bombardier of production work relating to the CRJ700
aircraft program. The Company and Bombardier agreed that each will be
responsible for their respective costs. Avcorp is actively pursuing
participation in Bombardier's supply chain for several of Bombardier's
programs. The Company currently produces components for the Bombardier
Challenger 605 and Challenger 850 business jets as well as composite
floorboards for the CRJ, Q400, and Learjet programs. The Company looks
forward to continuing its valued relationship as a supplier to
Bombardier, the leading Canadian aerospace manufacturer.
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.
