Candax Energy Inc. says that the first steps of the debt restructuring plan announced on December 14, 2010 (the "Debt Restructuring Plan") have been completed.

Effective December 24, 2010, the Bank of Scotland, as sole lender under Candax's US$45,000,000 bank debt (the "Bank Debt"), has assigned all rights and obligations under the Bank Debt to Geofinance N.V. (Geofinance).

Geofinance has subsequently agreed to waive payment of an amount equal to US$9,005,000 (representing a principal repayment of US$8,000,000 and fees of US$1,005,000 under the Bank Debt) otherwise due on December 31, 2010 until January 31, 2010. As detailed in the December 14, 2010 news release, payment by Candax of these amounts will be addressed under the terms of the final Restructuring Agreement.

The Restructuring Agreement, including the issuance of new common shares of Candax upon the conversion of a portion of the Bank Debt, is expected to close in the first two weeks of January 2011.

Tags: Candax Energy Inc.