Court Had Ordered Payment By Last Friday

Avcorp Industries, Inc. reports that it has entered into a settlement agreement with the Cessna Aircraft Company (Cessna) which settles all outstanding litigation between the Company and Cessna. The settlement requires payment by Cessna of $27,964,513 in satisfaction of the judgment entered against Cessna from an arbitration award made on November 16, 2012. The settlement funds were due to Avcorp on September 6, 2013.

This settlement follows the original arbitration award wherein the arbitration panel awarded the Company damages in the amount of $27,391,372, which, under the terms of an arbitration agreement between Cessna and the Company, was a final and binding award. On May 8, 2013, the United States District Court for the District of Kansas (the “District Court”) entered a final judgement in the Company’s favor on the arbitration award in the aggregate amount, including prejudgment interest, of $28,464,513.

A notice of appeal and a motion to stay execution was filed by Cessna on June 7, 2013 in the United States Court of Appeals for the Tenth Circuit from the judgment entered against Cessna on May 8, 2013 by the District Court. This settlement satisfies the judgment and will result in the dismissal of the outstanding appeal.

FMI: www.avcorp.com