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Rutter Announces Restructuring of Term Loans

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  Published in Science and Technology on Thursday, November 25th 2010 at 14:25 GMT by Market Wire
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ST. JOHN'S, Nov. 25 /CNW/ - Today, Rutter Inc. (TSX: RUT) announced that it has concluded an agreement with its senior lender to restructure its term loans. 

The agreement waives the Company's August 31, 2010 payment default, establishes new financial covenants and new payment terms for the loan, including $1,000,000 paid at closing, $1,000,000 due April 1, 2011 and the remaining balance of $3,714,000 maturing August 31, 2011.  As consideration, the Company agreed to pay a one-time fee at signing of $150,000 and to increase the interest rate on the Term Loan maturing December 2012 by 2%.

The Company has also today concluded a transaction to liquidate its 49% interest in AFN Engineering Inc., by means of a share redemption for consideration of $400,000.

Commenting on the debt restructuring, Fraser Edison, President and CEO noted "The Company has made significant progress toward addressing its overall debt levels since the end of the prior year, reducing our two term loans from $19,900,000 to $13,835,000 for a total reduction over the fifteen month period of $6,065,000.  We will work to reduce debt further in the coming year with our ultimate objective to achieve a less costly debt structure."

About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. Multidisciplinary consulting engineering services including civil, structural, mechanical and electrical engineering as well as environmental and construction management services are provided to a diverse client base which includes all levels of government and the oil and gas and industrial sectors. For more information see [ www.rutter.ca ]

Forward-Looking Statements
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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