LEVIS, QUEBEC--(Marketwire - May 19, 2011) - Davie Yards ("Davie" or the "Corporation") announced today that it has obtained an order from the Québec Superior Court (the "Court") extending the stay of proceedings ordered by the Court to July 7, 2011, the whole pursuant to the Companies' Creditors Arrangement Act ("CCAA").
Davie is continuing its discussions with Fincantieri – Cantieri Navali Italiani ("Fincantieri") and DRS Technologies Canada ("DRS"), a Finmeccanica company, regarding the proposed acquisition of the shipyard by an entity that will be majority-owned by Fincantieri.
On May 8, 2011, Davie's yard workers accepted with a strong majority of 93 percent the proposal for a five-year collective agreement presented by the consortium led by Fincantieri.
Fincantieri is one of the world's most prominent and diversified shipbuilding groups. With more than 7,000 ships delivered during two centuries, it has extensive experience in the construction of merchant and military vessels. To encourage the group's growth, Fincantieri has developed a series of initiatives in fields close to its core business, including ship repairs and conversion, marine systems and components, and mega-yachts. Headquartered in Trieste, Italy, the company employs more than 10,000 people and has eight shipyards in Italy and four in the United States. Fincantieri's US subsidiaries build ships for commercial and government customers, including the U.S. Navy and Coast Guard. Fincantieri had a turnover of approximately $ 4.0 billion in 2010. www.fincantieri.com
About DRS Technologies Canada
DRS Technologies Canada Ltd., a Finmeccanica company, and wholly owned subsidiary of DRS Technologies Inc., is a developer and manufacturer of world class systems in the areas of integrated shipboard communication systems and surveillance sensors. It has been a supplier of high-end defence electronics equipment and systems to Canadian Forces and other allied military forces for more than five decades. Finmeccanica is a world leader in the high technology sector and ranks among the top ten global players in aerospace, defence and security. The Finmeccanica group employs 75,000 persons worldwide and more than 12,000 in North America. In 2010, it generated revenues of approximately 18.7 billion euros. www.drs.com
About Davie Yards Inc.
Davie Yards Inc. owns and operates the Davie yard in Quebec. With over 185 years of operating experience, the shipyard is the largest in Canada and among the largest and most sophisticated in North America. The Corporation has a focus on building large and complex offshore service vessels and rigs, and other sophisticated vessels for commercial and governmental use. www.davie.ca.
This news release contains forward-looking information within the meaning of applicable Canadian securities legislation. These statements include those relating to statements that are not historical facts, and reflect the current intentions, plans, expectations and beliefs of Davie's management ("Management"). Such forward-looking statements reflect Management's current beliefs and are based on information currently available to Management. Forward-looking statements involve known and unknown risks, uncertainties and other factors outside Management's control. A number of factors could cause actual results of Davie to differ materially from the results predicted in the forward-looking statements, including, but not limited to, risks associated with the Corporation's current restructuring under the CCAA, fiscal results, working capital requirements, major disruptions of production, a downturn in economic conditions, competition and other factors.
Although the forward-looking statements contained herein are based upon what Management believes to be reasonable assumptions, Management cannot assure investors that actual results will be consistent with these forward-looking statements. Certain assumptions underlying the forward-looking statements contained in this news release include Management's assumptions regarding its current restructuring process under the CCAA, the risks associated with the NSPS, the market outlook for the construction of complex offshore vessels as well as the assumptions that new vessels will be delivered on schedule and that the Corporation will attract and retain key personnel in key positions. These forward-looking statements are made as of the date of this release, and Management assumes no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements. For additional information with respect to certain of these and other assumptions and risks, please refer to the Corporation's Management's Discussion and Analysis for quarter ended September 30, 2009 and the year ended December 31, 2008 as well as the Financial Statements for the quarter ended September 30, 2009 and the year ended December 31, 2008, and the Corporation's Annual Information Form dated March 29, 2009.