MTC Enters into Cancellation Agreement for Unmanned Aircraft System with USMC
MTC Technologies, Inc., announced today that the Company has entered into a cancellation
agreement with the United States Marine Corps Systems Command (the USMC) relating to the Tier II Unmanned Aircraft System (UAS) Concept Demonstrator System.
Under the agreement, MTC will return all performance-based payments in the aggregate amount of approximately $683 thousand and pay approximately $474 thousand for program costs to the USMC. As a result of the agreement, MTC expects to incur a one-time charge of approximately $6.7 million in the fourth quarter of 2007.
The Company indicated that potential purchasers of the Company were apprised of this matter during the diligence process and prior to the signing of the merger agreement with BAE Systems announced on December 21, 2007.
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