Cleanfield Triggers Default Event
The Board of Directors of Cleanfield Alternative Energy Inc. (AIR.V) announced 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 said it 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.
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.
AIR shares last traded at $0.015.