Wind Energy

LGC Skyrota Wind Energy announces lending arrangement update

LGC Skyrota Wind Energy Corp. ("LGC Skyrota" or the "Company") (TSX-V: LGS) announces that Ulster Bank (the "Bank") has demanded repayment of its loans to the Company’s major subsidiaries, Limavady Gear Company Ltd. ("Limavady") and Villagend Properties Ltd. ("Villagend"). The Bank has made its demand notwithstanding the fact that none of LGC Skyrota, Limavady or Villagend are in default of any of their respective covenants to the Bank.

The Bank has indicated that it intends to appoint an administrator of the Company’s business operations. The Company is endeavouring to negotiate with the Bank with a view to refinancing or other restructuring; however, there is currently no indication that the Bank is willing to enter into negotiations. The Company does not currently have an alternate source of financing available to meet the Bank’s demand. The Company will provide further information as this matter develops.

LGC Skyrota Wind Energy Corp. is a leader in the development and maintenance of clean-energy producing wind turbines. With operations based in Northern Ireland and executive offices located in Vancouver, B.C., the Company is well-positioned to expand throughout Europe and enter the North American wind power market.

The Company operates two business divisions: LGC, which rebuilds gearboxes for large wind turbines, and Skyrota, which manufactures a revolutionary 5kW small vertical-axis wind turbine. LGC Skyrota trades on the TSX Venture Exchange under the symbol LGS. 

www.lgcskyrota.com