Imperial Provides Corporate Update
June 21 2013 - 12:24PM
Business Wire
Imperial Petroleum, Inc. (OTCQX: IPMN), on behalf of its
wholly-owned subsidiaries is pleased to provide the following
update on the Company and its operations.
The Company finalized its settlement agreement with the bank in
connection with the guarantee of the debt of e-Biofuels under the
same terms as previously announced. The final settlement removed
any contingency for the sale of the e-Biofuels facility. The
payment date of the settlement amount of $1.0 million due to the
bank remains on or before December 31, 2015. We are working with
the bank under the supervision of the Indiana Department of
Environmental Management to remove any and all remaining chemicals
and materials held in tanks and other containers at the e-Biofuels
facility to allow the facility to be sold.
The Company completed and the bankruptcy court approved a
settlement with the Bankruptcy Trustee for the e-Biofuels
bankruptcy estate concerning a claim by the Trustee for $242,000 in
intercompany transfers made by e-Biofuels. Under the terms of the
settlement, the Company will pay the total amount claimed in
scheduled monthly payments through May 2014.
The Company signed two agreements with Archer Petroleum Corp. to
effect the sale of a 25% interest in the Peak Joint Venture for
500,000 shares of Archer restricted common stock and for the sale
of certain international manufacturing and marketing rights for
SANDKLENE 950 for $400,000 in cash, subject to a royalty
arrangement and the reservation by the Company of certain existing
customers. The Company will retain 25% of the Peak Joint Venture
project and will retain the rights to manufacture and sell
SANDKLENE 950 in the United States and internationally to its
existing customers. Closing is scheduled for July 15, 2013 and June
28, 2013 respectively, subject to the approval of the TSX
Exchange.
Jeffrey Wilson, President of the Company, said, “We are
continuing to work toward settling any outstanding claims and
disputes that arose as a result of the bankruptcy filing of
e-Biofuels. Our sale of part of the Peak Joint Venture and certain
international rights associated with SANDKLENE 950 is intended to
provide us with much needed working capital and another development
partner for the Peak Mine, once permitting is completed. The
development of the Stampede Mine, while slower than we had hoped,
is now accelerating with the arrival and installation of major
equipment items, completion of the tank battery work and
installation of piping and electrical systems. Our new target date
for startup is July 2013 subject to continued weather issues and
equipment delivery delays.”
Forward Looking
StatementThis press release may contain “forward-looking
statements” as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such statements are based on
management's current expectations and are subject to a number of
factors and uncertainties which could cause actual results to
differ materially from those described herein. Although the Company
believes that the expectations in such statements are reasonable,
there can be no assurance that such expectations will prove to be
correct.