SACKETS HARBOR, N.Y., April 14, 2011 /PRNewswire/ -- Seaway Valley Capital Corporation (PINKSHEETS: SEVA) announced that it continues to work towards debt reduction at the Company and is pleased to update the latest developments in that effort.
As previously announced the company sold its majority stake in Wisebuys, Inc. for the issuance of a $135,000 note and the assumption by the buyer of approximately $250,000 of Wisebuys' existing convertible debt. As a result, these convertible debts will no longer be carried on Seaway Valley's consolidated balance sheet.
As a result of the liquidation of the company's subsidiary, Patrick Hackett Hardware Company ("Hackett's"), approximately $8.5 million of Hackett's vendor payables and debts will be both discharged at the subsidiary level and no longer carried on the books of Seaway Valley.
The Company is also pleased to announce that it has entered into a settlement agreement with the holders of approximately $1.6 million of debt Seaway assumed from the acquisition of the hospitality assets of North Country Hospitality, Inc.
"The past 36 months have certainly been challenging for the company, but we have managed to eliminate or renegotiate over $10 million of Seaway's consolidated liabilities. And while we remain cautious regarding overall economic environment, the underlying businesses that Seaway and its subsidiaries operate continue to mostly show slow and steady improvement in their respective business fundamentals."
Safe Harbor Statement
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.
SOURCE Seaway Valley Capital Corporation