January 30, 2012 / 3:53 AM / 6 years ago

Northstar served notice of contract breach

Jan 29 - Canada’s Northstar Aerospace Inc NAS.TO said it received a notice from a major customer claiming breach of its obligations under certain contracts.

Northstar said the notification demands the company cure such breach or resolve the claims within 10 days.

The company, which announced doubts about its ability to “continue as a going concern” in September last year, said it has been unsuccessful in amending its customer contracts.

The company, which makes helicopter gears and transmissions, accessory gearbox assemblies and other machined and fabricated parts, said it is looking to determine the appropriate course of action in response to the notice.

Northstar said it expects to be in violation of its financial covenants as of January 31, and continues to be in discussion with its lenders to amend its credit agreement.

Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Matt Driskill

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