CALGARY, Feb. 19 /CNW/ - Crossfire Energy Services Inc. ("Crossfire" or the "Company") announces that it has received notice from its principal lender (the "Lender") that the Company is in default with respect to its financial covenants in its credit facility. Further, the Lender has made demand for immediate payment of the remaining balance under the credit facility. The Lender has notified it will proceed with the enforcement of its security should such payment not be made. In that regard, the Lender has advised that it will make application to the Court of Queen's Bench of Alberta tomorrow for the appointment of a receiver to manage the Company's affairs. The Company will consent to this application. The Company will issue further announcements regarding the status of its affairs with its principal lender and other stakeholders in due course.
The Company also announces that the directors and officers have resigned their respective positions with the Company.
ABOUT CROSSFIRE
The Company's business strategy involves merging complimentary service offerings together. As a result, it enables the Company to operate as a one-stop-shop for the fabrication, construction and maintenance relating to oilfield facilities. The strategy is guided by a focus to be recognized as a specialist in the fabrication of a wide scope of oilfield facility components, manufacturing subcontractor for major energy facilities projects, as well as the construction and maintenance of oilfield facilities and pipeline.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information: Dean Bethune, Crossfire Energy Services Inc., Suite 550, 340 - 12th Avenue SW, Calgary, AB, T2R 1L5, dbethune@crossfireenergy.ca, www.crossfireenergy.ca, (403) 237-5115; A. Scott Hamilton, Crossfire Energy Services Inc., Suite 1700, 800 - 6th Avenue SW, Calgary, AB, T2P 3G3, shamilton@crossfireenergy.ca
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