EmberClear Interest Payment on Outstanding Debentures Will Not be Paid
CALGARY, Jan. 10, 2014 /CNW/ - EmberClear Corp. (TSXV: EMB) ("EmberClear" or the "Company") announced today that it is in default under the trust indenture (the "Indenture") governing its 12.0% senior convertible unsecured debentures (the "Debentures") as a result of its failure to make the interest payment on the Debentures which was due December 31, 2013 within 10 days of such date. The aggregate principal amount of Debentures outstanding is $4,542,000 and the aggregate amount of the missed interest payment is $272,520.
Pursuant to the terms of the Indenture, as a result of the default the trustee (the "Trustee") under the Indenture may, in its discretion, and shall, upon direction of the holders of not less than 50% of the outstanding Debentures, declare all principal and interest on the Debentures due and payable. If EmberClear fails to forthwith pay the principal and interest after such demand, the Trustee may, in its discretion, and shall upon direction of the holders of not less than 50% of the Debentures (subject to the Trustee being funded and indemnified against the costs of such), proceed to obtain or enforce such payment. The holders of not less than 50% of the Debentures may also waive the default.
At this time EmberClear has not received notice that the Trustee or holders of not less than 50% of the Debentures intend to declare all amounts owing under the Debentures due and payable or to enforce the payment of such. EmberClear has been in the process of selling assets including, but not limited to, its Good Spring Natural Gas Combined Cycle ("NGCC") electricity generating project and intends to continue those activities. In addition, the Company will also review other financing alternatives that will permit it to make the outstanding interest payment and remedy the default. The Company can provide no assurance that the aforementioned asset sales or other financing alternatives will be successful or available to EmberClear or if available, will be on satisfactory terms.
EmberClear is an energy developer focused on low emission commercial scale projects around the world. Developing facilities using coal or natural gas as inputs to create electricity or transportation fuels characterizes our plants. We utilize our proven expertise in permitting, site control and engineering feasibility to develop projects that are sold to investors interested in purchasing, constructing and operating such energy projects. Currently, EmberClear owns and is in the process of developing two 330 MW natural gas combined cycle ("NGCC") electricity generating facilities in Good Spring, PA. These NGCC Projects benefit from a favorable geographic location that offers access to abundant natural gas reserves and a power market that is served primarily by older, coal fired, electric generation facilities that are expected to be phased out over time. EmberClear also holds surface and mineral rights in Schuylkill County, Pennsylvania. This property lies in the Southern Anthracite coalfield of eastern Pennsylvania, USA. Mineral rights held by the company include Anthracite/PCI coal suitable for the steel making industry. EmberClear's shares are listed on the TSX Venture Exchange under the trading symbol "EMB". For more information, please visit www.emberclear.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE EmberClear Corp.For further information:
David G. Anderson
+1 (403) 264-8817