Northstar Obtains Court Approval of Bidding Procedures and Bid Deadline

CHICAGO, June 28, 2012 /CNW/ - Northstar Aerospace, Inc. (the "Corporation", together with its affiliates "Northstar") announced today that its motions seeking approval of bidding procedures, including a deadline for bids (the "Bidding Procedures"), from the Ontario Superior Court of Justice (Commercial Division) (the "Canadian Court") which is supervising the proceedings of the Corporation and certain of its Canadian affiliates under the Companies' Creditors Arrangement Act commenced on June 14, 2012 (the "CCAA Proceedings") and from the United States Bankruptcy Court for the District of Delaware (the "US Court") which is supervising the proceedings commenced under Chapter 11 of the US Bankruptcy Code by certain of its U.S. subsidiaries on the same date (the "Chapter 11 Proceedings") were granted by the Canadian Court and the US Court on June 27, 2012.

As announced on June 14, 2012, the Corporation has entered into an asset purchase agreement, subject to approval of both the Canadian Court and the US Court (the "APA") with Heligear Acquisition Co. (as US Purchaser) and Heligear Canada Acquisition Corporation (as Canadian Purchaser), affiliates of Wynnchurch Capital, Ltd., pursuant to which substantially all of the operating assets of Northstar will be sold for an aggregate purchase price of approximately $70 million,  together with the assumption of certain liabilities.  The APA was approved for use as a "stalking horse bid" by the Canadian Court and by the US Court on June 27, 2012. Pursuant to the Bidding Procedures as approved by the Canadian Court and the US Court, higher and/or better offers must be submitted by no later than 5:00 p.m. (Toronto time) on July 13, 2012 (the "Bid Deadline").

Parties wishing to participate in the bidding process are invited to contact Jon Nemo of Harris Williams, Northstar's investment banker at 267-675-5911. Copies of the Bidding Procedures and the APA are available on the Monitor's website: www.ey.com/ca/northstaraerospace, or on the website of the Chapter 11 Notice Agent: www.loganandco.com.

Information about the Corporation's CCAA Proceeding, including copies of Canadian Court Orders and Monitor's reports, will be available on the Monitor's website at www.ey.com/ca/northstaraerospace.  Information about the Chapter 11 Proceedings, including US Court Orders, will be available at www.loganandco.com.

Northstar Aerospace, Inc. (www.nsaero.com) is North America's leading independent manufacturer of flight critical gears and transmissions.  Northstar Aerospace, Inc. is a public company 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 and Milton and Windsor, Ontario.

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 Corporation's CCAA proceeding, the sales process and obtaining additional financing 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 ability to access sufficient financing and the conditions associated with the sale of the Corporation's assets. 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.

David G. Anderson, General Counsel at [email protected] or 708.728.2055