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
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