MONTREAL, June 1, 2012 /CNW Telbec/ - Phoenix Aerospace Inc., a leading Montreal-based provider of heavy and light maintenance, has decided not to go ahead with its project of acquiring parts of Aveos' assets in the wake of the latter's surprising closure several weeks ago. This decision was announced today by Phoenix Aerospace's President, Serge Prvost, following a special meeting with his company's steering committee. Despite an extension of the submission deadline offered by Toronto's FTI Consultants, Phoenix Aerospace will not be bidding.

"Even with the additional time offered to potential bidders, the procedure appears to be too restrictive for Phoenix Aerospace's business model, and presents a number of uncertainties," said Mr. Prvost following his steering committee's meeting.

AN EXPANSION PROJET FAVOURED

The company's President also announced that they have decided to favour an expansion project worth tens of millions of dollars in heavy maintenance and MRO services for major airlines. This is a project that Phoenix Aerospace has been developing for some 15 months; started well before Aveos' closure, the project was put on hold in order to properly evaluate the acquisition of all or part of Aveos' assets.

Mr. Prvost is confident that in the near future, this expansion project will allow Phoenix Aerospace to call on specialized workers laid off from Aveos; Phoenix Aerospace's primary objective is to keep this talent and expertise in Montreal, thus benefitting a strong and distinctive local economy, and maintaining the area's prestigious global reputation as a centre of excellence in the aerospace industry.

About Phoenix Aerospace Inc. Based in Dorval, Quebec, Phoenix Aerospace Inc is recognized as a leading provider of light and heavy aircraft maintenance repair and overhaul (MRO). The company leverages leading edge technology and research and development in service to airlines and commercial and private fleet owners and operators. The company operates in a business environment that embraces profitability, effectiveness and efficiency in providing rapid services which, above all, fully comply with stringent Canadian, American, and European standards and regulations. Phoenix Aerospace also provides fleet maintenance as an outsourcing service to various airlines.

Source: Serge Prvost President Phoenix Aerospace Inc.

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Phoenix Aerospace Inc. of Montreal favours own expansion project over acquisition of Aveos assets