Press release from Marketwire
AeroMechanical Services Files Arbitration
Friday, November 18, 2011
AeroMechanical Services Files Arbitration18:15 EST Friday, November 18, 2011CALGARY, ALBERTA--(Marketwire - Nov. 18, 2011) - AeroMechanical Services Ltd. (TSX VENTURE:AMA) ("AMA" or the "Company"), announced today it has filed an application with the Court of Queen's Bench of Alberta against Sierra Nevada Corporation ("SNC") seeking the appointment of an arbitrator as a result of the absence of progress on discussions regarding outstanding accounts payable. The two companies were working together on the development of the Automated Flight Information Reporting System ("AFIRS™") 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 outstanding issues with SNC. To date, there has been no satisfactory resolution found and in order to make progress AMA has terminated the License and Manufacturing Agreement that was executed on December 29, 2008 for material breach and asked the courts to appoint an arbitrator to resolve the outstanding issues.AMA is claiming damages in the amount of $1,329,976 (US) and $2,650,000 (CDN) for the breach of the agreement. About AeroMechanical ServicesAeroMechanical Services Ltd., under the brand name FLYHT™, 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™ UpTime™, 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™, 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.Join us on social media! www.facebook.com/flyht www.twitter.com/flyhtcorp www.slideshare.net/flyhtcorp www.youtube.com/flyhtcorp FOR FURTHER INFORMATION PLEASE CONTACT: Thomas R. French, CGAAeroMechanical Services Ltd.VP Finance and CFO403email@example.comORColin LanguedocBarnes Communications Inc.Senior Consultant416-367-5000 ext. firstname.lastname@example.orgNeither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.