Clearwater Finance Inc. - Fyrirtækjafréttir

Clearwater Seafoods announces amendments to ISK denominated bonds

Clearwater Seafoods announces amendments to ISK denominated bonds

/Not for distribution to United States or for dissemination in the United       
States/                                                                         

HALIFAX, Sept. 28, 2010 /CNW/ - (TSX: CLR.UN, CLR.DB, CLR.DB.A):

Today, Clearwater Seafoods Limited Partnership ("Clearwater"), which is 54.27%  
owned by Clearwater Seafoods Income Fund (the "Fund"), announced that it has
signed an 
agreement to amend, extend and partially settle ISK denominated bonds with a
principal value of ISK 650 million (ISK 1.3 billion including principal,
adjustments for 
Consumer Price Index (“CPI”) and accrued interest of approximately Canadian
$11.9 million) that would have matured in September 2010. 

The amendments include:

- Majority Bondholders - Clearwater reached an agreement (“Extension
Agreement”) with the three largest bondholders (the “Majority Bondholders”),
who collectively hold a principal value of ISK 480 million or 73.85% of the
bonds outstanding (ISK 987 million including principal, CPI and accrued
interest or approximately Canadian $8.8 million), to extend the term of the
bonds to December 15, 2010 to allow for further discussions and review
regarding amending terms of the bonds. 

As part of the Extension Agreement, Clearwater agreed to amend the interest
rate on the bonds from 6.7% to 10.5% from September 27, 2010 to December 15,
2010 and to make a partial payment on the accumulated interest of the bonds
held by 
the Majority Bondholders of Canadian $730,000 immediately.

- Other Bondholders - Clearwater will make a payment to Other Bondholders, who
collectively hold a principal value of ISK 170 million or 26.15% of the bonds
outstanding, of ISK 350 million (which includes principal, CPI and accrued 
interest and in total approximates Canadian $3.1 million) to completely settle
all amounts owing to those bondholders. 

Mr. Robert Wight, Chief Financial Officer of Clearwater, stated, "Clearwater is
experiencing growing profit margins and earnings that will allow us to continue 
to reduce our debt and leverage levels. This extension and repayment is in line
with ourgoal of reducing our debt levels and it simplifies future discussions
with the ISK bondholders by reducing the number of holders to three.  Finally,
this extension agreement provides management with sufficient time to focus on
other debt maturities and evaluate options in the context of our ongoing review
of our capital structure."

About these bonds

These bonds are listed in the Icelandic Securities Depository system under
trading symbol CF 05 1 (ISIN IS0000010999) and were issued by a wholly owned
subsidiary of Clearwater, Clearwater Finance Inc, Icelandic ID number is
690805-9950. 

After completion of the the Extension Agreement the amount of the bonds will be
reduced from ISK 2,460,000,000 to ISK 480,000,000. 

KE Partners is acting as financial advisor to Clearwater in connection with the 
Extension Agreement.

About Clearwater

Clearwater is recognized for its consistent quality, wide diversity and reliable
delivery of premium seafood, including scallops, lobster, clams, coldwater
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 market. 

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