Clearwater Seafoods to revisit refinancing options for convertible debentures

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

HALIFAX, March 16 /CNW/ - (TSX: CLR.UN, CLR.DB, CLR.DB.A):

    
    - Cancels scheduled 7% convertible Debentureholder meeting
    - Will revisit refinancing options
    

Today Clearwater Seafoods Income Fund (the "Fund")announced that the serial meeting of the holders ("Debentureholders") of the 7% convertible unsecured subordinated debentures due December 31, 2010 (the "2010 Debentures"), in connection with the proposed amendments, has been cancelled. The meeting of Debentureholders was scheduled for 10:00 a.m. on Tuesday, March 16, 2010.

The meeting has been cancelled as the voting results as of March 12, 2010, the cutoff date to receive proxies, although positive, indicated that the proposed amendments to the 2010 Debentures would not receive the required 66 2/3% approval of the votes cast.

The Fund may, in the future, revisit refinancing options of the 2010 Debentures. If any determination is made in regards to refinancing options, the Fund will advise the Debentureholders.

Mr. Colin MacDonald, Chairman of CS ManPar Inc., the general partner of the Fund's administrator, Clearwater Seafoods Limited Partnership ("Clearwater"), and Chairman and Chief Executive Officer of Clearwater stated, "We had looked at amending these convertible debentures before their maturity as part of our ongoing review of the Fund's capital structure and strategy to address maturing debt facilities. We respect the feedback received from the Debentureholders and will take some additional time to consider other options to refinance the 2010 Debentures."

Tom Traves, Chair of the Board of Trustees, added, "While the Trustees felt that the terms offered had a number of benefits for Debentureholders, given the voting results, we will continue to review the Fund's capital structure and in particular the options available for addressing the maturity of the 2010 Debentures".

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]