Cleanfield Clarifies its Default with Respect to its Credit Facility
TORONTO, Feb. 27, 2013 /CNW/ - On February 22, 2013, the Board of Directors of Cleanfield Alternative Energy Inc. ("Cleanfield" or "Company") (TSX VENTURE: AIR) announced that it had triggered an event of default as defined in Section 8.1 (e) of the Trust Indenture dated July 31, 2008 related to its senior secured debt.
Cleanfield's Board passed a resolution on February 22, 2013, to either wind-up or liquidate the Company and its subsidiary, Cleanfield Energy Corp. This resolution triggered the event of default. Due to a failed financing commitment; Cleanfield does not currently have any funding options to repay the secured credit amount of $1,475,000, when the credit facility is due in July 2013. The Debt is secured by a first charge security interest over all the assets of Cleanfield and its subsidiary, Cleanfield Energy Corp.
Furthermore, because of Cleanfield's lack of positive cash flows, its inability to secure additional working capital and weakened demand for the Company's products, the Company is unable to properly operate. Cleanfield is currently in discussions with the secured credit facility's trustee who is considering alternatives for the Company. Cleanfield holds intellectual property and tax loss carryforwards.
Forward Looking Statements: Certain statements in this news release may be considered to be forward-looking. These statements relate to future events or Cleanfield's future results including revenues and reflect the current assumptions and expectations of management. Unknown factors may affect the events, performance, revenues and results of operations described herein. Cleanfield undertakes no obligation, and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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