Global Aircraft Solutions Announces the Sale of a 737-200 to Canadian North
Global Aircraft Solutions, Inc. (OTCBB: GACF)
today announced that it has sold one 737-200 aircraft (SN 23074) to
Canadian North for $2.8 million plus additional MRO services which are to
be provided by Global's wholly owned subsidiary, Hamilton Aerospace
Technologies, Inc. The Company has used $730,000 of the sale proceeds to
permanently reduce the principal amount of its senior debt which currently
stands at $9 million.
Global also announced that, after numerous contract extensions, it had
defaulted Pamir Airways, the undisclosed buyer of two 737-200 aircraft
previously referenced in the Company press release dated October 16, 2007.
In its default notice to Pamir, Global notified Pamir that Global was
excused from any obligations arising from the Purchase Agreement between
the parties, and that Global was retaining $1.5 million in deposits from
Pamir as liquidated damages.
John Sawyer, President of Global Aircraft Solutions, commented, "We are
pleased to have sold the first of the five 737-200 aircraft we received as
part of our settlement agreement with BCI. We have also executed letters of
intent and accepted deposits on two additional 737-200s and one MD82. We
hope to finalize and announce these additional sales transactions shortly.
Once completed, the sale of these aircraft will allow the Company to
continue improving its operating liquidity and further reduce its senior
debt."
Additionally, management is advising its shareholders that that the Company
anticipates booking a loss for its fiscal year ending December 31, 2007.
This aniticipated loss is principally a result of liquidity problems and
reduced revenues due to delays in closing certain aircraft sales
transactions and non-performance by the customer on aircraft sales that
were signed in 2007. One-time finance costs and the anticipated write-off
of some significantly past due receivables are also expected to contribute
to a loss projected for the fourth quarter 2007.
Ian Herman, Chairman and Chief Executive Officer of Global Aircraft
Solutions, stated, "2007 was a difficult year for the Company, and which we
anticipate will show a loss for the first time since 2003. However, given
the refinancing we were able to complete at the end of 2007, and the
aircraft sales and maintenance business we now have in hand and have
pending, I am confident that Global will return to profitability in 2008,
starting with the first quarter of this year."
Global Aircraft Solutions, Inc. is an integrated aviation company engaged
in aircraft trading, aircraft parts sales, and scheduled maintenance,
repair and overhaul (MRO) services for commercial airlines, charter
airlines and aviation leasing companies. Hamilton Aerospace and World Jet,
both wholly owned divisions of Global Aircraft Solutions, operate from
facilities comprising approximately 25 acres located at Tucson
International Airport. These facilities include hangars, workshops,
warehouses, offices and other buildings. Notable customers include Avolar
Airlines, Jetran International, Goodrich Corporation, AAR, the Mexican
Government, Afrijet Airlines, Pegasus Aviation, Aloha Airlines, Alant
Soyuz, United Breweries Holdings and Global Aircraft Leasing Partners.
Except for the historical information presented, this press release
contains "forward-looking statements" made in reliance upon the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995
or regulations thereunder including, but not limited to expected and
estimated revenue and earnings. Forward-looking statements are made based
upon management's expectations and belief concerning future developments
and their potential effect upon the Company. There can be no assurance that
future developments will be in accordance with management's expectations or
that the effect of future developments on the Company will be those
anticipated by management.
The words "believes," "expects," "intends," "plans," "anticipates,"
"hopes," "likely," "will," and similar expressions identify such
forward-looking statements. Such forward-looking statements involve known
and unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of the Company or its
subsidiaries or industry results, to differ materially from future results,
performance or achievements expressed or implied by such forward-looking
statements. These risks include the economic health of the airline
industry, demand for Global Aircraft Solutions' services, and competitive
pricing pressures.
In addition, other risks are detailed in Global's Form 10-K for the year
ended December 31, 2006, and Global's Form 10-Q for the quarter ended
September 30, 2007. These statements speak only as of above dates, and
Global disclaims any intent or obligation to update them.
