VANCOUVER, Nov. 20, 2019 /CNW/ - Avcorp Industries Inc.
(TSX: AVP) (the "Corporation" or "Avcorp" or the "Avcorp Group") is
pleased to announce that it has entered into agreements to extend
the term and increase certain credit facilities with its current
lender. The credit facilities are supported by a major and material
customer of the Company by way of guarantee. Pursuant to the
amended and restated loan agreements and standby facility credit
agreement, the term of the loan and customer guarantees have been
extended to 2021 maturity and under certain condition can be
further extended to 2023.
In addition, Panta has agreed to provide Avcorp an additional
USD$3.5million secured loan. The
extension of the Corporation's credit facilities and the additional
facility provide the Corporation with the necessary liquidity to
fulfill its current backlog of orders to its customers and supports
the Company's recent efforts to re-structure operations, win long-
term production contracts and strengthen its relationships with key
customers.
"These amended and restated credit agreements provide to the
Company the financial stability for the next few years and show the
continued support of our largest shareholder, Panta", stated Avcorp
Group CEO, Amandeep Kaler.
About Avcorp
The Avcorp Group designs and builds major airframe structures
for some of the world's leading aircraft companies, including BAE
Systems, Boeing, Bombardier, Lockheed Martin and Subaru
Corporation. The Avcorp Group has more than 60 years of experience,
over 700 skilled employees and 636,000 square feet of facilities.
Avcorp Structures & Integration located in Delta British Columbia, Canada is dedicated to
metallic and composite aerostructures assembly and integration;
Avcorp Engineered Composites located in Burlington Ontario, Canada is dedicated to
design and manufacture of composite aerostructures, and Avcorp
Composite Fabrication located in Gardena
California, USA has advanced composite aerostructures
fabrication capabilities for composite aerostructures. The Avcorp
Group 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. Comtek Advanced
Structures Ltd., at our Burlington,
Ontario, Canada location also provides aircraft operators
with aircraft structural component repair services for commercial
aircraft.
Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US
Holdings Inc. Both companies are incorporated in the State of Delaware, USA, and are wholly owned
subsidiaries of Avcorp Industries Inc.
Comtek Advanced Structures Ltd., incorporated in the Province of
Ontario, Canada, is a wholly owned
subsidiary of Avcorp Industries Inc.
Avcorp Industries Inc. is a federally incorporated reporting
company in Canada and trades on
the Toronto Stock Exchange (TSX:AVP).
"Amandeep Kaler"
AMANDEEP KALER
CHIEF EXECUTIVE OFFICER
AVCORP GROUP
Forward-Looking Statements
This release should be read in conjunction with the
Corporation's unaudited financial statements contained in the
Corporation's Annual Report and with the quarterly financial
statements and accompanying notes filed with Sedar
(www.sedar.com).
Certain statements in this release and other oral and written
statements made by the Corporation 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) changes in worldwide economic and political conditions that
impact interest and foreign exchange rates; (b) the occurrence of
work stoppages and strikes at key facilities of the Corporation or
the Corporation's customers or suppliers; (c) government funding
and program approvals affecting products being developed or sold
under government programs; (d) cost and delivery performance under
various program and development contracts; (e) the adequacy of cost
estimates for various customer care programs including servicing
warranties; (f) the ability to control costs and successful
implementation of various cost reduction programs; (g) the timing
of certifications of new aircraft products; (h) the occurrence of
downturns in customer markets to which the Corporation products are
sold or supplied or where the Corporation offers financing; (i)
changes in aircraft delivery schedules or cancellation of orders;
(j) the Corporation's ability to offset, through cost reductions,
raw material price increases and pricing pressure brought by
original equipment manufacturer customers; (k) the availability and
cost of insurance; (l) the Corporation's ability to maintain
portfolio credit quality; (m) the Corporation's access to debt
financing at competitive rates; (n) uncertainty in estimating
contingent liabilities and establishing reserves tailored to
address such contingencies; and (o) integration of newly acquired
operations and associated expenses may adversely affect
profitability.
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SOURCE Avcorp Industries Inc.