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Avcorp receives notice of appeal from Cessna Aircraft Company

06/10/2013 | PR Newswire

Avcorp Industries, Inc. (the "Company") reports that it has received a notice of appeal and a motion to stay execution filed by Cessna Aircraft Company ("Cessna") on June 7, 2013 in the United States Court of Appeals for the Tenth Circuit (the "Court of Appeals") from the judgement entered against Cessna on May 8, 2013 by the United States District Court for the District of Kansas (the "District Court"). The judgement of the District Court affirmed the binding arbitration award made on November 16, 2012 in favour of the Company.

The arbitration panel awarded the Company USD27.4 million, which, under the terms of an arbitration agreement between Cessna and the Company, was a final and binding award. On November 26, 2012, Cessna filed a motion in the District Court to vacate the award. On May 1, 2013, the District Court entered its Memorandum and Order which denied Cessna's motion to vacate the award, finding that Cessna did not satisfy the required legal standard. The District Court also granted the Company's motion to affirm the award and, in addition, awarded pre-judgement interest of approximately USD1 million. On May 8, 2013, the District Court entered final judgement in the Company's favour on the arbitration award in the aggregate amount of USD28.4 million.

It is the Company's belief that Cessna's appeal from the judgement is without legal basis and that the judgement will be affirmed by the Court of Appeals.

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