Avcorp Reaches Refinancing Milestones.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--June 6, 2003 Avcorp Industries Inc. (AVP AVP arginine vasopressin. on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. ) announced today that is has successfully reached significant milestones in its refinancing Refinancing An extension and/or increase in amount of existing debt. . The Company has reached agreement with two of its principal lenders which, on closing, will eliminate approximately $5.0 million of debt. The Company continues discussions with its third major lender regarding debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: . These agreements have resulted in removal of conditions for a sale/leaseback of its facilities, and this sale/leaseback is scheduled to close in the third quarter for further debt reduction of approximately $15.0 million. These transactions are being made to significantly strengthen the Company's balance sheet and lower debt servicing costs. Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for engineering design, manufacture and assembly of subassemblies and complex major structures for aircraft manufacturers. Certain statements in this report and other oral and written statements made by the Company from time to time are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including those that discuss strategies, goals, outlook or other non-historical matters; or project 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 extent to which the Company is able to achieve savings from its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plans; (b) uncertainty in estimating the amount and timing of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (I) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) pension plan income falling below current forecasts; (o) the Company's ability to maintain portfolio credit quality; (p) the Company's access to debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay at competitive rates; and (q) uncertainty in estimating contingent liabilities Contingent Liability 1. The possibility of an obligation to pay certain sums dependent on future events. 2. Defined obligations by a company that must be met, but the probability of payment is minimal. Notes: 1. and establishing reserves tailored to address such contingencies. JOHN H. NICHOLSON President and Chief Executive Officer |
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