West Hawk Development Corp.

West Hawk Development Corp.

May 08, 2008 23:10 ET

Fuselier Meets and Proposes Settlement Terms With All Creditors of West Hawk

DENVER, COLORADO--(Marketwire - May 8, 2008) - West Hawk Development Corp. ("West Hawk") (TSX VENTURE:WHD)(FRANKFURT:H5N) (the "Company") is pleased to announce that Fuselier Holdings, LLC ("Fuselier") announced today that it has now met with all creditors of West Hawk, including at a global meeting with 29 creditors present who had filed lawsuits or made liens against West Hawk.

Fuselier reports formal agreements have now been made to all creditors and that responses are expected on or before May 14th, 2008. The aggregate amount of debt addressed in these proposals to creditors total US$8.5 million; the majority of that debt has been assigned to Fuselier. The proposed agreements include terms of release by lien holders of current encumbrances against West Hawk assets.

"Curing the lien/lawsuit situation of West Hawk should allow that Company to grow swiftly by allowing it to pursue corporate goals without restriction. I am pleased at the overall cooperation of all parties involved, including an effort by West Hawk to see that all creditors are paid and by creditors in giving freedom to West Hawk for expansion and strategic growth," said Dr. Jean R. Fuselier, Sr., President and CEO of Fuselier Holding, LLC.

Fuselier previously announced a definitive agreement to transfer and assign to Fuselier approximately US$10.6 million in outstanding trade debt, including all the debt outstanding for West Hawk's natural gas property being developed in Colorado.

On behalf of the Board of Directors,

Dr. Wm. Mark Hart, President and Chief Executive Officer

About the Company: West Hawk Development Corp. is focused on providing valuable, high-demand energy products from a variety of sources. Assets include the Figure Four natural gas property located in the Piceance Basin, Colorado, being developed under a drilling and development agreement; the Groundhog coal property located in northwest British Columbia; the Tulita coal property in the Northwest Territories; and the Ellesmere Island, Nunavut Territory coal property.

Cautionary Note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specially noted, are considered speculative. The Company has filed a National Instrument 51-101 Report on the Figure Four property. The Company has filed National Instrument 43-101 Reports for each of the Tulita coal property in the Northwest Territories, the Nunavut Coal property and the Groundhog Coal property. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.

Contact Information

  • West Hawk Development Corp.
    Dr. Wm. Mark Hart
    President and Chief Executive Officer
    (303) 524-1424
    (303) 524-1285 (FAX)
    Website: www.westhawkdevelopment.com