Northstar Aerospace announces extension of forbearance agreement and announces delay in filing of 2011 annual financial statements

Listed:  TSX
Symbol: NAS

CHICAGO, March 23, 2012 /CNW/ - Northstar Aerospace, Inc. (TSX: NAS) (the "Corporation") announced that the forbearance agreement entered into with the syndicate of lenders under the Corporation's existing credit facility has been extended.  Under the forbearance agreement, as extended, the lenders have agreed to forbear from the exercise of their rights under the credit facility through April 6, 2012.

In conjunction with the completion of the 2011 year-end financial statements, the Corporation's management is reviewing several matters with its advisors relating to recorded asset values and liabilities.  The completion of such review may result in charges to the financial statements for the fiscal year ended December 31, 2011 that would be considered material in nature.

Due to current financial difficulties, the Corporation announced that it will not file its audited financial statements for the year ended December 31, 2011, the related management's discussion and analysis and the related CEO and CFO certificates by the deadline of March 30, 2012. At this time it is uncertain as to when the Corporation will be able to finalize its financial statements and related disclosures.

The Corporation is continuing its process of exploring and evaluating strategic alternatives for the Corporation. As previously disclosed in the notes to the Corporation's interim financial statements as of September 30, 2011, significant doubt remains regarding the Corporation's ability to continue as a going concern. No assurances can be given that the financial issues being faced by the Corporation will be resolved in a satisfactory manner.

Northstar Aerospace, Inc. (www.nsaero.com) is North America's leading independent manufacturer of flight critical gears and transmissions. Northstar Aerospace is a public company (TSX:NAS) with operating subsidiaries in the United States and Canada. Its principal products include helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of components and transmissions. The Company's executive offices are located in Chicago, Illinois. Its plants are located in Chicago, Illinois; Phoenix, Arizona; Milton and Windsor, Ontario, Canada.

Forward Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this press release, including the statements in the press release relating to the statements relating to the forbearance agreement,  the statements relating to the failure of the Corporation to file its financial statements and related disclosures, the statements regarding the recorded asset values and liabilities, the statements regarding a charge to the financial statements, the statements relating to the process of exploring and evaluating strategic alternatives for the Corporation, the statements relating to the Corporation's financial position and ability to continue as a going concern may be or include forward looking statements. Forward-looking information contained herein is based upon a number of assumptions and actual future events may differ materially depending on a variety of factors, including the Corporation's completion of its review of the recorded asset values and liabilities, the Corporation's ability to finalize its financial statements and related disclosures, to successfully extend the terms of the forbearance agreements or for the process of exploring strategic alternatives to result in any specific transaction. Other important factors that could cause actual results to differ materially from the Corporation's expectations (together with the cautionary statements in the previous sentence, "Cautionary Statements") are included in the Corporation's Consolidated Financial Statements for the Years Ended December 31, 2010 and 2009 - Management's Discussion and Analysis - Risks and Uncertainties, the Corporation's Annual Information Form filed on March 25, 2011, under the heading of Risks and Uncertainties, the Corporation's Consolidated Interim Financial Statements for the three and nine months ended September 30, 2011, and 2010 under the heading Basis Of Preparation And Adoption Of IFRS - Going Concern and in the related Management's Discussion and Analysis under the heading Risks and Uncertainties and the heading Going Concern. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to have been correct. All information contained in this press release and subsequent written and oral forward-looking statements attributable to the Corporation or persons acting on behalf of the Corporation are expressly qualified in their entirety by the Cautionary Statements. The Corporation disclaims any intentions or obligation to update or revise any forward looking statements or comments as a result of any new information, future event or otherwise, unless such disclosure is required by law.

Craig Yuen, Chief Financial and Strategy Officer at [email protected] or 708.728.2121