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 default.
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.
About EmberClear
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.
