Attention Business/Financial Editors: Clearwater Seafoods Income Fund Provides Update on Strategic Review and Distributions /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ HALIFAX, Jan. 21 /CNW/ - (TSX:CLR.UN): Clearwater Seafoods Income Fund (the "Fund") announced today that it has appointed BMO Nesbitt Burns as its financial advisor for the strategic review it announced on November 14, 2007. The objective of the strategic review, which commenced during the fourth quarter of 2007, is to identify and consider strategic alternatives available to maximize unitholder value. There can be no assurance that the review process will result in a decision regarding any transaction, or that it will be completed in any specific time frame. "The seafood industry is constantly changing whether it be due to the kinds of innovations in technology that Clearwater has pioneered throughout its history, or environmental changes, or economic realities, or a host of other variables. Over the course of its 31-year history, Clearwater has remained a leader because of its ability to be flexible. We recognize, however, that the current structure of the Fund poses challenges as a result of recent weak financial performance, the need to maintain distributions and the Canadian government income trust legislation which inhibits the Fund's ability to raise capital and grow and which will impose a tax on all income trusts commencing in 2011. We are therefore working with our financial advisors to consider strategies to maximize value for our unitholders and foster the long term growth of our business", stated Tom Traves, Chairman of the Fund. The trustees also indicated that Clearwater Fine Foods Incorporated ("CFFI"), which owns 48% of Clearwater Seafoods Limited Partnership ("CSLP") has advised that it continues to review its options. Stan Spavold, Executive Vice-President of CFFI stated, "Clearwater remains an important strategic investment for CFFI and we continue to believe in the long term prospects of the business. We have come to the belief that the current structure of CSLP is inhibiting the ability of CSLP to grow and respond to its current challenges." The Fund also announced that, having distributed $0.60 per unit in 2007, and distributing cash in excess of the amounts generated in 2007, it will suspend monthly cash distributions. The Fund's performance in 2007 was affected by the strengthening of the Canadian dollar, vessel disruptions in the clam fleet, and lower-than-expected sales. The trustees and directors have also agreed that upon completion of the strategic review, if the company remains in its current structure, distributions will be determined quarterly and paid in arrears after considering the traditional criteria in determining the distribution policy. This distribution policy change will not impact Clearwater's outstanding convertible debentures. Clearwater will continue to pay interest semi-annually on the convertible debentures at their regularly scheduled dates. About Clearwater Clearwater is recognized for its consistent quality, wide diversity and reliable delivery of premium seafood, including scallops, lobster, clams, cold water shrimp, crab and groundfish. Since its founding in 1976, Clearwater has invested in science, people, technology, resource ownership and resource management to preserve and grow its seafood resource. This commitment has allowed it to remain a leader in the global seafood industry. %SEDAR: 00018023E For further information: Robert Wight, Chief Financial Officer, Clearwater, (902) 457-2369; Tyrone Cotie, Director of Corporate Finance and Investor Relations, Clearwater, (902) 457-8181
- Clearwater Seafoods Income Fund Provides Update on Strategic Review and Distributions - Frétt áður birt á ensku 21.01.2008 22:25:19 CET
| Source: Clearwater Finance Inc.