AeroMechanical Services Files ArbitrationAeroMechanical Services Files Arbitration
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(TM)") 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.