Northstar to Seek Court Approval of Boeing Release
Northstar Aerospace, Inc. has announced that it intends to grant a Release and Covenant not to sue to The Boeing Company by which Northstar will release, acquit and discharge Boeing, its members, officers, directors, employees, agents, consultants, attorneys, successors and assigns in respect of any actions or causes of action, suits, claims, judgments, executions and damages, except for certain excluded claims.
Reuters announced separately, that the company plans to sell approximately $40 million of its assets during a liquidation process. In order to repay the company’s debts, Northstar agreed to a tentative deal with Wynnchurch Capital as stalking-horse bidder to sell some of its assets.
As previously announced, the corporation and certain of its Canadian affiliates commenced proceedings under the Companies’ Creditors Arrangement Act on June 14, 2012 (and certain of the corporation’s U.S. affiliates commenced proceedings under Chapter 11 of the U.S. Bankruptcy Code on the same date. Also as previously announced, Boeing Capital Loan Corporation agreed to provide additional debtor-in-possession (DIP) financing of up to $7 million during the Chapter 11 proceedings, subject to customary terms and conditions.
By granting the Boeing Release, which is a condition of the debtor-in-possession financing being provided by Boeing Capital Loan Corporation to certain U.S. affiliates of the corporation, Northstar will be granting a broad release of all claims and potential claims against Boeing with the exception of certain reserved claims. Northstar will seek court approval of the Boeing Release on a date to be set by the Ontario Superior Court of Justice, provided that the hearing will take place no earlier than July 14, 2012. Any party requesting more information on the motion for court approval of the Boeing Release is asked to contact Ernst & Young Inc., the court-appointed Monitor in the proceedings commenced by the Corporation under the Companies’ Creditors Arrangement Act on June 14, 2012.
Northstar Aerospace, Inc. is an independent manufacturer of flight critical gears and transmissions.
Previously on abfjournal.com: