Clearwater Seafoods announces amendments to ISK denominated bonds

/NOT FOR DISTRIBUTION TO UNITED STATES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, Sept. 28 /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 our goal 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 Clearwater

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

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.

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For further information: Robert Wight, Chief Financial Officer, Clearwater, [phone]; Tyrone Cotie, Director of Corporate Finance and Investor Relations, Clearwater, [phone]