Clearwater gets extension on $60-million in debt

Clearwater Seafoods LP said yesterday it has negotiated a seven-month extension on a total of more than $60-million in term notes that were to have come due Monday. The Halifax company, a subsidiary of Clearwater Seafoods Income Fund, said the extension to June 8, 2009, from Dec. 8 of this year covers two tranches of notes, one worth $15-million (U.S.), the other $43-million (Canadian). However, the company also said that among the conditions it has agreed to are restrictions on capital spending, asset sales and incurring additional debt, and a ban on distributions to unit holders during the extension. Clearwater also said it has been able to restructure some of its foreign exchange contracts so that its forex lenders will finance about $16-million it owes under mark-to-market accounting rules in a line of credit repayable over 12 months. CLR.UN (TSX) fell 2 cents to 89 cents.