Clearwater Cancels Privatization Plans
Clearwater Seafoods Income Fund announced yesterday that it is unable to complete its plan to go private due to the uncertainty surrounding Icelandic bank Glitnir and the volatility of the global financial climate.
Glitnir had committed to provide about 10 percent of the financing required to complete the deal, originally announced in August and approved by Clearwater shareholders in September. But soon after, the Icelandic government put Glitnir into receivership, then the Halifax, Nova Scotia, seafood company announced earlier this month that it was delaying the transaction.
Glitnir was acquired by Norwegian bank SpareBank 1 just over a week ago.
"Clearwater [Seafoods Income Fund] has and will continue to be a long-term strategic investment for [Clearwater Fine Foods], and we continue to believe in the long-term prospects of the business," says John Risley, CFFI president. "We will continue to work with the fund and its advisors in reviewing its options as markets return to more normal conditions."
Risley and his brother-in-law, CEO Colin MacDonald, were in line to acquire a controlling interest in the company.
"We remain confident in the business and its prospects for the long term," adds Tom Traves, trustee chairman. "We will continue to work with CFFI to review alternatives to maximize value for" shareholders.