Earth Biofuels: Debt on Biodiesel Facility restructured
Through the execution of an Amended and Restated Credit Agreement, Guarantee and Collateral Agreement with Fourth Third, LLC as part of the Company’s liquefied natural gas (“LNG”) spin-off transaction announced last week, an existing $9,000,000 Promissory Note with Fourth Third was replaced by a new $5,000,000 Promissory Note with Fourth Third. The new $5,000,000 Promissory Note is secured by Earth Biofuels’ biodiesel production facility in Durant, Oklahoma. The $4,000,000 debt reduction was converted to the $34 million Promissory Note held by Fourth Third from PNG Ventures, Inc., which is secured by PNG Ventures’ LNG processing facility in Topock, Arizona.
Earth Biofuels is actively pursuing an engineering upgrade to its Durant biodiesel facility to allow for the pre-treatment of high free fatty acid (“FFA”) feedstock oils and to increase its production capacity to 20 million gallons per year.
Earth Biofuels, Inc. endeavors to produce and distribute biodiesel fuel and cellulosic ethanol through wholesale and retail outlets. The biodiesel fuel is sold under Willie Nelson's brand name, "BioWillie®." The Company's Web site is www.earthbiofuels.com.
Forward-Looking Statements Disclosure
This press release may contain “forward-looking statements” within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company’s expected future business and financial performance, and often contain words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “seeks,” “will,” and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the “safe harbor” provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company’s anticipated results, projections, or other expectations are disclosed in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.
Earth Biofuels, Inc.
Shawne Horn, 866-765-4940
Source: Earth Biofuels, Inc.