Channel Ridge Estate Holdings Ltd.

Channel Ridge Estate Holdings Ltd.

April 17, 2008 14:53 ET

Channel Ridge Announces Extension Of Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 17, 2008) - Channel Ridge Properties Ltd., a wholly-owned subsidiary of Channel Ridge Estate Holdings Inc., is pleased to announce that HSBC Bank Canada has granted a further extension of its financing. The loan and guarantee have been extended from February 29, 2008 to June 30, 2008, under the same terms and conditions. The fees for this extension total $217,500. In addition, in the event that the guarantee is not repaid or cancelled by June 30, 2008, Channel Ridge must pay a penalty fee of $202,500, and the monthly guarantee fee shall increase from $46,575 (being 1.15% of the amount of the guarantee) to $131,625 (being 3.25% of the amount of the guarantee), commencing July 1, 2008 and continuing until the guarantee is returned or cancelled.

Channel Ridge is exploring alternative financing to retire the HSBC loan prior to June 30, 2008. The Company is currently working on an offer for financing from a lender with some conditions to be fulfilled. There is no assurance that this loan will be completed.

In the event the HSBC loan is not repaid in full by June 30, 2008, Channel Ridge would be required to list the property and begin marketing it for sale.

Contact Information

  • Channel Ridge Holdings Inc.
    Jim Blaney
    Chairman
    (780) 440-4949