TORONTO,
Feb. 27, 2013 /CNW/ - On February 22, 2013, the Board of Directors of
Cleanfield Alternative Energy Inc. ("Cleanfield" or "Company") (TSX
VENTURE: AIR) announced that it had triggered an event of default
as defined in Section 8.1 (e) of the Trust Indenture dated
July 31, 2008 related to its senior
secured debt.
Cleanfield's Board passed a resolution on
February 22, 2013, to either wind-up
or liquidate the Company and its subsidiary, Cleanfield Energy
Corp. This resolution triggered the event of default. Due to
a failed financing commitment; Cleanfield does not currently have
any funding options to repay the secured credit amount of
$1,475,000, when the credit facility
is due in July 2013. The Debt is
secured by a first charge security interest over all the assets of
Cleanfield and its subsidiary, Cleanfield Energy Corp.
Furthermore, because of Cleanfield's lack of
positive cash flows, its inability to secure additional working
capital and weakened demand for the Company's products, the Company
is unable to properly operate. Cleanfield is currently in
discussions with the secured credit facility's trustee who is
considering alternatives for the Company. Cleanfield holds
intellectual property and tax loss carryforwards.
Forward Looking Statements: Certain
statements in this news release may be considered to be
forward-looking. These statements relate to future events or
Cleanfield's future results including revenues and reflect the
current assumptions and expectations of management. Unknown factors
may affect the events, performance, revenues and results of
operations described herein. Cleanfield undertakes no obligation,
and does not intend to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable laws.
Neither 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 release.
SOURCE Cleanfield Alternative Energy Inc.