Clearwater Seafoods announces extension of 2010 ISK denominated bonds

/NOT FOR DISTRIBUTION TO UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Dec. 15 /CNW/ - (TSX: CLR.UN, CLR.DB.B, CLR.DB.A): Today, Clearwater Seafoods Limited Partnership ("Clearwater") announced that it has signed an agreement ("Extension Agreement") to extend and partially settle maturing ISK denominated bonds with a principal value of ISK 480 million (ISK 936 billion or approximately Canadian $8.2 million including principal, adjustments for Consumer Price Index ("CPI") and accrued interest).

The extension and partial settlement agreement includes the following:

  • Extension - Clearwater reached an extension agreement with the three institutions that hold the bonds (the "Bondholders") to extend the maturity date of the bonds from December 15, 2010 to January 15, 2012.

  • Partial interest payment and change in timing of interest payments - Clearwater agreed to make a partial payment immediately on the accumulated interest of the bonds of Canadian $1.4 million reducing the amount of the bonds outstanding, including principal, CPI and accrued interest, to approximately Canadian $6.8 million.  In addition, interest on the bonds will be paid quarterly with the first interest payment due on March 15, 2011.

Mr. Robert Wight, Chief Financial Officer of Clearwater, stated, "The extension agreement removes the last piece of our near-term maturing debt and will allow management to focus on growing our business and the execution of business plans which have already begun to yield improved performance."

About Clearwater

Clearwater is recognized for its consistent quality, wide diversity and reliable delivery of premium seafood, including scallops, lobster, clams, coldwater shrimp, crab and ground fish.

Since its founding in 1976, Clearwater has invested in science, people, technology, resource ownership and resource management to preserve and grow its seafood resource. This commitment has allowed it to remain a leader in the global seafood market.

SOURCE Clearwater Seafoods Incorporated

For further information: For further information:

Robert Wight, Chief Financial Officer, Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and Investor Relations, Clearwater, (902) 457-8181


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