{"id":458205,"date":"2021-03-15T20:04:20","date_gmt":"2021-03-16T00:04:20","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=458205"},"modified":"2021-03-15T20:04:20","modified_gmt":"2021-03-16T00:04:20","slug":"avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer\/","title":{"rendered":"Avcorp Announces Accommodation Agreement with Significant Shareholder and a Customer"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">VANCOUVER, BC<\/span>, <span class=\"xn-chron\">March 15, 2021<\/span> \/PRNewswire\/ &#8211;\u00a0Avcorp Industries Inc. (TSX: AVP) (the &#8220;Company&#8221; or &#8220;Avcorp&#8221;) 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 &#8220;Agreement&#8221;) whereby, inter alia:<\/p>\n<ul type=\"disc\">\n<li>The shareholder has agreed to provide a new non revolving standby loan facility and capital equipment loan to the Company for up to <span class=\"xn-money\">$13 million USD<\/span> combined; and <\/li>\n<li>The elimination of unamortized cash advances and forgiveness of certain historic and future guarantee fees payable to the customer totalling in aggregate approximately <span class=\"xn-money\">$11 million USD<\/span>.<\/li>\n<\/ul>\n<p>The Agreement represents a significant development in the relationship with our customer and will enhance the Company&#8217;s financial performance as a result of the accommodations described herein. &#8220;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&#8221; stated <span class=\"xn-person\">Amandeep Kaler<\/span>, Avcorp Chief Executive Officer.<\/p>\n<p>\n        <b>About Avcorp<br \/><\/b>The Avcorp Group designs and builds major airframe structures for some of the world&#8217;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 &amp; Integration located in Delta <span class=\"xn-location\">British Columbia, Canada<\/span> is dedicated to metallic and composite aerostructures assembly and integration; Avcorp Engineered Composites located in <span class=\"xn-location\">Burlington Ontario, Canada<\/span> is dedicated to design and manufacture of composite aerostructures, and Avcorp Composite Fabrication located in <span class=\"xn-location\">Gardena California<\/span>, 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 <span class=\"xn-location\">Burlington, Ontario, Canada<\/span> location also provides aircraft operators with aircraft structural component repair services for commercial\u00a0aircraft.<\/p>\n<p>Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US Holdings Inc. Both companies are incorporated in the <span class=\"xn-location\">State of Delaware, USA<\/span>, and are wholly owned subsidiaries of Avcorp Industries Inc.<\/p>\n<p>Comtek Advanced Structures Ltd., incorporated in the Province of <span class=\"xn-location\">Ontario, Canada<\/span>, is a wholly owned subsidiary of Avcorp Industries Inc.<\/p>\n<p>Avcorp Industries Inc. is a federally incorporated reporting company in <span class=\"xn-location\">Canada<\/span> and traded on the Toronto Stock Exchange (TSX:AVP).<\/p>\n<p>\n        <span class=\"xn-person\">AMANDEEP KALER<\/span><br \/>\n        <br \/>CHIEF EXECUTIVE OFFICER <br \/>AVCORP GROUP <\/p>\n<p>\n        <b>Forward-Looking Statements<\/b>\n      <\/p>\n<p>This release should be read in conjunction with the Company&#8217;s unaudited financial statements contained in the Company&#8217;s Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (<a href=\"http:\/\/www.sedar.com\" rel=\"nofollow\">www.sedar.com<\/a>).<\/p>\n<p>Certain statements in this release 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) 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&#8217;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&#8217;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&#8217;s ability to maintain portfolio credit quality; (m) the Corporation&#8217;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\u00a0profitability.<\/p>\n<p>For\u00a0further\u00a0information\u00a0about Avcorp\u00a0Industries\u00a0Inc. please visit our\u00a0website.<br \/><b><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3098055-1&amp;h=685994293&amp;u=http%3A%2F%2Fwww.avcorp.com%2F&amp;a=www.avcorp.com\" rel=\"nofollow noopener noreferrer\">www.avcorp.com<\/a><\/b><\/p>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=VA10731&amp;sd=2021-03-15\" \/> View original content:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer-301247755.html\">http:\/\/www.prnewswire.com\/news-releases\/avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer-301247755.html<\/a><\/p>\n<p>SOURCE  Avcorp Industries Inc.<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=VA10731&amp;Transmission_Id=202103152000PR_NEWS_USPR_____VA10731&amp;DateId=20210315\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire VANCOUVER, BC, March 15, 2021 \/PRNewswire\/ &#8211;\u00a0Avcorp Industries Inc. (TSX: AVP) (the &#8220;Company&#8221; or &#8220;Avcorp&#8221;) 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 &#8220;Agreement&#8221;) 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&#8217;s financial performance &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Avcorp Announces Accommodation Agreement with Significant Shareholder and a Customer&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-458205","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Avcorp Announces Accommodation Agreement with Significant Shareholder and a Customer - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/avcorp-announces-accommodation-agreement-with-significant-shareholder-and-a-customer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Avcorp Announces Accommodation Agreement with Significant Shareholder and a Customer - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire VANCOUVER, BC, March 15, 2021 \/PRNewswire\/ &#8211;\u00a0Avcorp Industries Inc. (TSX: AVP) (the &#8220;Company&#8221; or &#8220;Avcorp&#8221;) 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 &#8220;Agreement&#8221;) 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. 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(TSX: AVP) (the &#8220;Company&#8221; or &#8220;Avcorp&#8221;) 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 &#8220;Agreement&#8221;) 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. 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