AeroMechanical Services Ltd. Named as a Defendant in an Action Brought by Sierra Nevada Corporation
December 02 2011 - 3:32PM
Marketwired Canada
AeroMechanical Services Ltd. (TSX VENTURE:AMA) ("AMA" or the "Company"),
announced today it has learned that it has been named as a Defendant in an
action brought by Sierra Nevada Corporation ("SNC") in the state of Utah seeking
damages for the non-payment of invoices totaling approximately $2,042,000 along
with interest and costs. The claims are in breach of contract, debt and unjust
enrichment. AMA had previously commenced arbitration proceedings against SNC in
Alberta. AMA will be contesting the jurisdiction of the Utah court and will be
asserting that Alberta is the convenient forum for the determination of both
disputes. Pursuant to a press release dated November 18, 2011, AMA had
previously announced that it had filed an application with the Court of Queen's
Bench of Alberta against SNC seeking the appointment of an arbitrator as a
result of the absence of progress regarding the outstanding accounts payable.
AMA has claimed damages in the amount of $1,329,976 (US) and $2,650,000 (CDN).
The Company and SNC were working together on the development of the Automated
Flight Information Reporting System ("AFIRS(TM)") 228. Late in 2010, AMA's
management recognized the progress on the AFIRS 228 was not on track, delayed
and over budget and moved development in-house. Since then, the Company has been
attempting to resolve the issue with SNC. To date, there has been no
satisfactory resolution found and in order to make progress, AMA terminated the
License and Manufacturing Agreement that was executed on December 29, 2008 for
material breach and has asked the Court of Queen's Bench of Alberta to appoint
an arbitrator to resolve the outstanding issues. The Court as appointed an
arbitrator, and the appointment may be contested by SNC.
About AeroMechanical Services
AeroMechanical Services Ltd., under the brand name FLYHT(TM), provides
proprietary technological products and services designed to reduce costs and
improve efficiencies in the airline industry. The company has patented and
commercialized three products and associated services currently marketed to
airlines, manufacturers and maintenance organizations around the world. Its
premier technology, AFIRS(TM) UpTime(TM), allows airlines to monitor and manage
aircraft operations anywhere, anytime, in real time. If an aircraft encounters
an emergency, AMA's triggered data streaming mode, FLYHTStream(TM),
automatically streams vital data, normally secured in the black box, to
designated sites on the ground in real time. The company has been publicly
traded on the TSX Venture Exchange since 2003 under the trading symbol AMA.
AFIRS, UpTime, FLYHT, FLYHTStream and aeroQ are trademarks of AeroMechanical
Services Ltd.
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