VANCOUVER, BC, March 15, 2021 /CNW/ – Avcorp Industries Inc. (TSX: AVP) (the “Company” or “Avcorp”) is pleased to announce today that it has entered into a multi-party Accommodation Agreement with each of a significant shareholder and one of our customers (the “Agreement”) whereby, inter alia:
- The shareholder has agreed to provide a new non revolving standby loan facility and capital equipment loan to the Company for up to $13 million USD combined; and
- The elimination of unamortized cash advances and forgiveness of certain historic and future guarantee fees payable to the customer totalling in aggregate approximately $11 million USD.
The Agreement represents a significant development in the relationship with our customer and will enhance the Company’s financial performance as a result of the accommodations described herein. “At a time when the aircraft industry generally has struggled with the impact of Covid-19 the Agreement with the significant shareholder and customer will provide additional stability” stated Amandeep Kaler, Avcorp Chief Executive Officer.
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 500 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.