EarthFirst Canada Inc. - Twelfth Default Status Report and Update



    
    /NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE
    SERVICES/
    

    CALGARY, April 27 /CNW/ - EarthFirst Canada Inc. ("EarthFirst" or the
"Company") (TSX: EF, EF.WT) provides its twelfth bi-weekly Default Status
Report under National Policy 12-203 - Cease Trade Orders for Continuous
Disclosure Defaults, pursuant to which EarthFirst announced that its financial
statements for the third quarter ended September 30, 2008 would not be filed
by November 14, 2008 and that its annual audited financial statements,
management's discussion and analysis, annual information form and related CEO
and CFO certifications for the year ended December 31, 2008 (collectively, the
"Annual Filings") would not be filed by March 31, 2009. EarthFirst reports
that since announcing the original Notice of Default on November 10, 2008
there have not been any material changes to the information contained therein;
nor any failure by EarthFirst to fulfill its intentions as stated therein.
Further, there have been no additional material changes respecting EarthFirst
and its affairs which have not been previously disclosed or are not disclosed
below. EarthFirst intends to file its next Default Status Report on Monday,
May 11, 2009.
    On April 24, 2009, the Court of Queen's Bench of Alberta, Judicial Centre
of Calgary (the "Court") granted an extension until May 22, 2009 of the
initial Order granted on November 4, 2008 pursuant to which EarthFirst was
granted creditor protection under the CCAA. The extension was supported by
Ernst & Young Inc., the Court-appointed Monitor of EarthFirst's CCAA process
and was not objected to by counsel to EarthFirst's secured creditor, WestLB
AG.
    On November 4, 2008, EarthFirst and WestLB AG entered into a forbearance
agreement in respect of the indebtedness owed WestLB AG by EarthFirst
agreeing, among other things, that WestLB AG would be exempted from the stay
in the CCAA initial order but would forbear from enforcing its claim under the
negotiated terms of the agreement and to other matters relating to the conduct
of EarthFirst during the period of CCAA protection. This forbearance agreement
has been extended to April 14, 2009. EarthFirst and WestLB AG are continuing
to negotiate an extension to this agreement and EarthFirst will provide
further disclosure of the result of these negotiations as information is known
to the Company.
    EarthFirst continues to work with certain bidders who have made offers to
purchase some or all of the Company and/or EarthFirst's Dokie I project and/or
certain of the wind turbines associated with the Dokie I project. EarthFirst
will continue to work with these bidders and other interested parties in an
effort to consummate a transaction with one of them prior to the end of May.
If one of these transactions does not close, or if EarthFirst cannot obtain
some other funding prior to the end of May, 2009, EarthFirst may not have
sufficient funds to continue to operate.
    EarthFirst announced today that it has closed on the sale of all of the
shares of its wholly owned-subsidiary, EarthFirst Nuttby Inc. to Nova Scotia
Power Incorporated, which was previously announced on April 21, 2009 and
approved by the Court of Queen's Bench of Alberta on April 24, 2009. As a
result of this transaction, EarthFirst has received net proceeds of
approximately $708,000, which represents gross proceeds of $800,000, less
working capital and other adjustments.

    Certain statements included in this news release constitute
"forward-looking information" within the meaning of applicable securities
legislation including the timing and continuance of CCAA protection and the
timing of filing of EarthFirst's interim financial statements, related
management's discussion and analysis and related CEO and CFO certifications
for the third quarter ended September 30, 2008 and its Annual Filings and
matters relating to issues pertaining to certain flow through shares of
EarthFirst. Such forward-looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of EarthFirst to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking information.

    Specifically, some of the material risks include not being able to
acquire required permits, delays in construction timing or turbine delivery,
not being able to complete a purchase and sale transaction or obtain financing
and the uncertainty involved in the Court proceedings and the implementation
of a Plan under the CCAA.

    The forward-looking information contained in this news release represents
the expectations of EarthFirst as at April 27, 2009, and, accordingly, is
subject to change after such date. However, EarthFirst expressly disclaims any
intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as
required by applicable law.





For further information:

For further information: Brian Trypka, Chief Restructuring Officer,
EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: (877) 513-0777,
E-mail: btrypka@earthfirstcanada.com; Derren Newell, VP, Finance and Chief
Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll
Free:(877) 513-0777, E-mail: dnewell@earthfirstcanada.com

Organization Profile

EARTHFIRST CANADA INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890