Northstar to Seek Court Approval of Boeing Release

CHICAGO, June 28, 2012 /CNW/ - Northstar Aerospace, Inc. (the "Corporation", together with its affiliates "Northstar") has announced that Northstar intends to grant a Release and Covenant not to Sue (the "Boeing Release") to The Boeing Company by which Northstar will release, acquit and discharge Boeing, its members, officers, directors, employees, agents, consultants, attorneys, successors and assigns in respect of any actions or causes of action, suits, claims, judgments, executions and damages, except for certain excluded claims.

As previously announced, the Corporation and certain of its Canadian affiliates commenced proceedings under the Companies' Creditors Arrangement Act on June 14, 2012 (the "CCAA Proceedings") and certain of the Corporation's U.S. affiliates commenced proceedings under Chapter 11 of the US Bankruptcy Code on the same date (the "Chapter 11 Proceedings"). Also as previously announced, Boeing Capital Loan Corporation agreed to provide additional debtor-in-possession ("DIP") financing of up to $7 million during the Chapter 11 proceedings, subject to customary terms and conditions.

By granting the Boeing Release, which is a condition of the debtor-in-possession financing being provided by Boeing Capital Loan Corporation to certain US affiliates of the Corporation, Northstar will be granting a broad release of all claims and potential claims against Boeing with the exception of certain reserved claims. Northstar will seek Court approval of the Boeing Release on a date to be set by the Ontario Superior Court of Justice, provided that the hearing will take place no earlier than July 14, 2012.  Any party requesting more information on the motion for Court approval of the Boeing Release is asked to contact Ernst & Young Inc., the Court-appointed Monitor in the proceedings commenced by the Corporation under the Companies' Creditors Arrangement Act on June 14, 2012.

Information about the Corporation's CCAA Proceedings, 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.

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