CALGARY, Nov. 28, 2013 /CNW/ - Alston Energy Inc. ("Alston" or the "Company") announces that it has received a demand for repayment and notice of
intent to enforce security from one of its secured creditors, Second
Wave Petroleum Inc. ("Second Wave"). Pursuant to a loan agreement dated February 24, 2011 between CanRock
Energy Corp., a predecessor entity of the Company, and Second Wave (the
"Loan Agreement"), the Company pledged its assets as security for a vendor take-back
loan in connection with an asset purchase from Second Wave. Pursuant to
an amendment to the Loan Agreement entered into contemporaneously with
the merger between the Company and CanRock Energy Corp. in July 2012,
the Company agreed to make quarterly payments of principal and interest
on this loan, with the final balance to be paid out by August, 2015.
The Company failed to make the most recent quarterly installment of
principal and interest. As a result, the Company is in default to
Second Wave who has demanded full repayment and indicated its intention
to enforce its security if such repayment is not made by December 6,
2013. The Company is currently considering its options with respect to
the notice provided by Second Wave and is continuing to pursue
strategic alternatives in an attempt to preserve shareholder value and
protect the interests of all creditors of the Company. Further
information will be forthcoming in future news releases.
The Company also announces it will file its interim financial statements
and related management's discussion and analysis for the three and nine
month period ended September 30, 2013 with the Canadian securities
regulatory authorities on SEDAR (www.sedar.com.) on or before November 29, 2013.
Alston Energy Inc. trades on the TSX Venture Exchange under the trading
symbol "ALO". For additional information about Alston please visit our
website www.alstonenergy.ca or under the company profile on SEDAR www.sedar.com.
Neither the 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 press
SOURCE: Alston Energy Inc.
For further information:
ALSTON ENERGY INC.
Don K. Umbach, President & CEO
Tel.: (403) 265-2770 Ext. 222
Neil G. Burrows, VP Finance & CFO
Tel.: (403) 265-2770 Ext. 228