Thirteenth Default Status Report and Update
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May 11, 2009 08:05AM
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Attention Business Editors
EarthFirst Canada Inc. - Thirteenth Default Status Report and Update
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CALGARY, May 11 /CNW/ - EarthFirst Canada Inc.
("EarthFirst" or the
"Company") (TSX: EF, EF.WT) provides its thirteenth bi-weekly Default Status Report under National Policy 12-203 - Cease Trade Orders for Continuous Disclosure Defaults, pursuant to which EarthFirst announced that its: (a) financial statements for the third quarter ended September 30, 2008 would not be filed by November 14, 2008; (b) 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 would not be filed by March 31, 2009; and (c) its financial statements for the first quarter ended March 31, 2009 would not be filed by May 15, 2009 (collectively the "Required Filings"). 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 25, 2009. 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 May 15, 2009. EarthFirst announced today that it has entered into a binding agreement
with 2204926 Ontario Limited, a joint venture of Schneider Power Inc. and Land's End Corporation, to sell all of the shares (the "Sale") of its wholly-owned subsidiary, Grand Valley Wind Farms Inc. As a result of this transaction EarthFirst will receive funds of $800,000, less working capital and other adjustments. The completion of the Sale is subject to, among other customary closing conditions and approval by the Court of Queen's Bench of Alberta pursuant to EarthFirst's current proceedings under the Companies Creditors' Arrangement Act. Assuming court approval is obtained, the completion of the transaction is expected to occur on or about May 27, 2009. 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 June. If one of these transactions does not close, or if EarthFirst cannot obtain some other funding prior to the end of June, 2009, EarthFirst may not have sufficient funds to continue to operate. 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 Required 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 May 11, 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. -30- /For further information: Brian Trypka, Chief Restructuring Officer, EarthFirst Canada Inc., Tel: (403) 513-0780, Toll Free: 1-877-513-0777, E-mail: [email protected]; Derren Newell, VP, Finance and Chief Financial Officer, EarthFirst Canada Inc., Tel: (403) 513-0766, Toll Free: 1-877-513-0777, E-mail: [email protected]/