GACF - Global Aircraft Solutions, Inc. enters into Strategic Alliance with Global Aircraft Leasing Partners, LLC
Tuesday March 13, 9:00 am ET
-- B. Riley & Co., Inc. to Serve as Financial Advisors
-- John Sawyer to be appointed CEO of Global Aircraft Solutions
TUCSON, Ariz.--(BUSINESS WIRE)--Global Aircraft Solutions, Inc. (OTC BB: GACF - News), an integrated aviation company engaged in aircraft trading, aircraft parts sales, and providing maintenance, repair and overhaul (MRO) services for commercial airlines, charter airlines and aviation leasing companies, today announced that the Company has acquired a 20% ownership interest in, and entered into an exclusive service agreement with, Global Aircraft Leasing Partners ("GALP"). Concurrently, the Company entered into a financial advisory services agreement with B. Riley & Co., Inc. ("B. Riley").
GALP is a start-up aircraft-leasing venture formed to acquire aircraft through a combination of debt and equity financing, and lease these commercial jet aircraft to operators throughout the world. GACF and GALP have entered into a strategic alliance wherein Global Aircraft will acquire a 20% interest in GALP in exchange for a capital contribution of $20,000, together with infrastructure, industry expertise, management assistance, and other non-monetary contributions. Global Aircraft will specifically not be required to invest capital in aircraft acquired by GALP. Other members of GALP will include equity funding specialists and aircraft leasing professionals. Global Aircraft and GALP have also agreed that Global will have first right of refusal for all aircraft maintenance, aircraft parts and technical consulting requirements GALP may have as a result of its aircraft acquisition and leasing activities. Global expects that its strategic partnership with GALP will have a positive effect upon the volume of its MRO and parts sales businesses.
Additionally, GALP has entered into an agreement with B. Riley wherein GALP will provide the equity portion for GALP aircraft acquisitions, while B. Riley will assist in securing the debt portion of the financing for those acquisitions. B. Riley has also agreed to assist Global Aircraft in obtaining an expanded operating credit facility as well as a $25,000,000 credit facility for Global to pursue its own aircraft trading opportunities.
B. Riley & Co., Inc. is a Los Angeles based brokerage firm which provides research and brokerage services to institutional clients and high net worth individuals and investment banking services to a wide range of middle market public and private companies. Within its Investment Banking department, the firm's Aviation and Aerospace Practice Group has provided corporate finance services to a variety of companies involved in both the commercial and general aviation industries.
Furthermore, Ian Herman will continue his duties as Chairman of the Company, while John Sawyer, President of Global Aircraft, will be assuming the title of CEO. Mr. Herman advised the Company that he would be devoting the majority of his time to the development of the start-up aircraft leasing company, Global Aircraft Leasing Partners, LLC (GALP). Global Aircraft's Board of Directors has ratified Mr. Sawyer's appointment as CEO, the strategic alliance with GALP, and the engagement of B. Riley.
Ian Herman, Chairman of Global Aircraft Solutions, commented, "I am very proud of the progress that Global Aircraft Solutions has made since I became the founding Chairman and CEO of the Company at its formation early in 2002. We have now built a solid management team, which I am confidant no longer requires my full time oversight to successfully operate the Company. In my business career, my greatest enjoyment has always come from guiding start-up or distressed companies to the point where they are successful and self-sustaining. Accordingly, I will be stepping down from my role as CEO at Global Aircraft in order to operate this new start-up opportunity at GALP. I remain committed to providing strategic guidance and to building value at GACF as its Chairman of the Board. I am particularly pleased that the new business venture I am pursuing, if successful, will also contribute substantially to the future growth and success of Global Aircraft Solutions."
John Sawyer, President and CEO of Global Aircraft Solutions, added, "All of us at the Company look forward to continuing our working relationship with Ian as Chairman of GALP and GACF. I am excited about the business opportunities associated with our participation in GALP and I believe that our new relationship with B. Riley will play an important role in taking Global Aircraft to the next level."
About Global Aircraft Solutions, Inc.
Global Aircraft Solutions, Inc. (OTC BB: GACF - News) provides parts support and maintenance, repair and overhaul (MRO) services for large passenger jet aircraft to scheduled and charter airlines and aviation leasing companies. Hamilton Aerospace and World Jet, both divisions of Global Aircraft Solutions, operate from adjacent facilities comprising about 35 acres located at Tucson International Airport. These facilities include hangars, workshops, warehouses, offices and other buildings. Notable customers include Avolar Airlines, BCI Aircraft Leasing, Jetran International, Goodrich Corporation, AAR, the Mexican Presidential Fleet, Pegasus Aviation, Shaheen Airlines, Iraqi Airways, Royal Khmer Airlines and Alant Soyuz.
Global's website is located at www.globalaircraftsolutions.com. The Hamilton Aerospace website is located at www.hamaerotech.com.
Safe Harbor
Except for the historical information presented, this press release contains "forward-looking statements" made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 or regulations there under including, but not limited to expected and estimated revenue and earnings. Forward-looking statements are made based upon management's expectations and belief concerning future developments and their potential effect upon the Company. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on the Company will be those anticipated by management. The words "believes," "expects," "intends," "plans," "anticipates," "hopes," "likely," "will," and similar expressions identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company or its subsidiaries or industry results, to differ materially from future results, performance or achievements expressed or implied by such forward-looking statements. These risks include the economic health of the airline industry, demand for Global Aircraft Solutions' services, and competitive pricing pressures. In addition, other risks are detailed in Global's Form 10-KSB for the year ended December 31, 2005, Global's Form 10-Q for the quarter ended March 31, 2006, Global's 10-Q for the quarter ended June 30, 2006 and Global's Form 10-Q for the quarter ended September 30, 2006. These statements speak only as of above date, and Global disclaims any intent or obligation to update them.
Contact:
Global Aircraft Solutions
Ian Herman, 520-275-6059
iherman@hamaerotech.com
or
Gordon Hamilton, 520-547-8631
dhamilton@hamaerotech.com
or
Alliance Advisors, LLC
Alan Sheinwald, 914-669-0222
asheinwald@allianceadvisors.net
or
B. Riley & Co., Inc.
Robert W. Campbell
Managing Director, Investment Banking
949-852-9911x234
949-852-0430 fax
www.brileyco.com
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Source: Global Aircraft Solutions, Inc
