TSX: CKI; CKI.DB; CKI.DB.A
HALIFAX, Oct. 30 /CNW/ - Clarke Inc. ("Clarke") announces that it has
taken an assignment of a $15.75 million term loan provided to Granby
Industries Limited Partnership, a subsidiary of Granby Industries Income Fund
("Granby"). The term loan was established under a credit agreement (the
"Credit Agreement") dated as of December 16, 2004, as amended, between Granby
and two Canadian chartered banks. In connection with the assignment of the
term loan, Clarke has also agreed to provide an unconditional guarantee of the
$9.0 million revolving credit facility established under the Credit Agreement.
The current balance outstanding under the revolving credit facility is
approximately $4.57 million.
Rob Normandeau, Chief Operating Officer for Clarke, commented on the
assignment, saying "Granby has faced, and will continue to face, significant
financial challenges. We will work with senior management and the independent
members of the Granby Board to determine whether a workable refinancing plan
can be crafted. Clarke will demand full and proper compensation for the risk
being assumed in connection with this transaction."
Clarke is a Halifax-based activist and catalyst investment company with a
diversified portfolio of strategic and opportunistic investments, including
several wholly-owned subsidiaries operating in the transportation services
industry. From time to time, Clarke also participates in joint ventures when
they offer the opportunity to create shareholder value. Led by George Armoyan
and an entrepreneurial team of professionals focused on uncovering and
creating value, Clarke invests in undervalued businesses and participates
actively where necessary to enhance performance and increase returns. In 2006
alone, Clarke delivered a shareholder return on investment, including
dividends, of 33%. Clarke's securities trade on the Toronto Stock Exchange
(CKI, CKI.DB; CKI.DB.A); for more information about Clarke Inc., please visit
our website at www.clarkeinc.com.
For further information:
For further information: Rob Normandeau, Clarke Inc., (902) 442-3000,
Fax: (902) 442-0187