Exco Technologies Limited - Press Release
TORONTO, June 1 /CNW/ - Exco Technologies Limited (TSX-XTC) today announced that it has executed agreements with Chrysler LLC for the recovery of all of its pre-petition accounts receivable and all existing contracts with Chrysler LLC will be assumed by the newly formed Chrysler/Fiat entity. The Company has already received in excess of US$2.5 million from Chrysler LLC in this regard. Receipt of the balance of approximately US$700,000 is scheduled to be paid during the month of June.
The Company's account receivable exposure to Visteon Corporation (Visteon) and General Motors Corporation (GM) as a result of recent filings for Chapter 11 bankruptcy protection is approximately US$600,000 and US$200,000 respectively. Partial recovery of these amounts is expected as the Company asserts its rights for shipments made within the 20 day administrative claim period and certain tooling lien rights.
The Company also announced that it concluded the sale of its Techmire facility in Anjou, Quebec for net cash proceeds of $3.6 million.
"We are of course disappointed to see such insolvencies taking place, however, we feel that restructuring vital to the future of the North American automotive industry is now taking place and this will benefit the OEM's, Tier's and suppliers such as Exco", said Exco CEO Brian Robbins.
The Company continues to have a strong balance sheet with no long term debt and net cash of approximately $9 million.
Exco Technologies Limited is a global supplier of innovative technologies servicing the die-cast, extrusion and automotive industries. Through our 10 strategic locations, we employ 1,500 people and service a diverse and broad customer base.
This news release contains forward-looking information and forward- looking statements within the meaning of applicable securities laws. We use words such as "anticipate", "plan", "may", "will", "should", "expect", "believe", "estimate" and similar expressions to identify forward-looking information and statements. Such forward-looking information and statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe to be relevant and appropriate in the circumstances. Readers are cautioned not to place undue reliance on forward-looking information and statements, as there can be no assurance that the assumptions, plans, intentions or expectations upon which such statements are based will occur. Forward-looking information and statements are subject to known and unknown risks, uncertainties, assumptions and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed, implied or anticipated by such information and statements. These risks, uncertainties and assumptions are described in the Company's Management's Discussion and Analysis included in our 2008 Annual Report, in our 2008 Annual Information Form and, from time to time, in other reports and filings made by the Company with securities regulatory authorities.
While the Company believes that the expectations expressed by such forward-looking information and statements are reasonable, there can be no assurance that such expectations and assumptions will prove to be correct. In evaluating forward-looking information and statements, readers should carefully consider the various factors which could cause actual results or events to differ materially from those indicated in the forward-looking information and statements. Readers are cautioned that the foregoing list of important factors is not exhaustive. Furthermore, the Company disclaims any obligations to update publicly or otherwise revise any such factors or any of the forward-looking information or statements contained herein to reflect subsequent information, events or developments, changes in risk factors or otherwise.
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