Oct. 17, 2016 - Scotia Atlantic Biomass Company Limited, a subsidiary of Viridis Energy Inc., announced it has received a Demand Notice from Cornwall Investments LLC., a secured creditor, in the amount of $6.35 million. The company also received from Cornwall a Notice of Intention to Enforce Security under Rule 124.
The Demand Notice indicates the company is in breach of its obligations under the Credit Agreements including without limitation its obligations more particularly set out in Schedule A of the Demand which include the non-payment of principal and interest due; the breach or default of Scotia to repay borrowed money, the suspension of material operations of Scotia, the insolvency of Scotia. These Events of Default constitute a breach under the Credit Agreements.
Cornwall intends to enforce its security on Scotia’s property, which includes land, fixtures, buildings, plants and improvements, equipment, inventory, debts, accounts, claims, cash and contractual rights, licenses and all rights and title and interest.
“Despite the challenges over the past number of years with the Scotia facility, Cornwall provided a series of loans for the initial acquisition of the assets, capital improvements, and working capital,” said Christopher Robertson, chief executive officer of Viridis Energy. “Operations had recently improved and Scotia was on track to reach profitability for the first time, however, low oil prices and the severe downturn in the European market occurred and as a result, Scotia was not able to address the Cornwall debt.”
About Viridis Energy Viridis Energy (VRD.H) (TSXV:VRD) is a publicly traded, “Cleantech” manufacturer and distributor of renewable energy providing wood pellet biomass to global residential and industrial markets. For further information about Viridis Energy Inc., visit the company website at www.viridisenergy.ca