Thursday, March 25, 2010

PNG Ventures Inc. (PNGXQ.OB) Subsidiaries Emerge from Chapter 11 Protection

PNG Ventures Inc. today announced that five of its wholly owned subsidiaries have successfully emerged from Chapter 11 bankruptcy protection, voluntarily filed September 9, 2009.

The Plan of Reorganization for New Earth LNG LLC, Arizona LNG LLC, Applied LNG Technologies USA LLC, Fleet Star Inc., and Earth Leasing Inc. (collectively, the company) was confirmed March 12, 2010, resulting in the conversion of a majority of the company’s outstanding debt to new common equity, and eliminating the impact of certain onerous contracts inherited as part of the company’s June 30, 2008, share exchange transaction with Earth Biofuels Inc.

Cem Hacioglu, president and CEO of PNG Ventures is confidant of the company’s ability to move forward in the alternative fuels industry.

“We are very happy to have successfully completed this critical process within a short period and are excited about the prospects of our new company going forward. Having recapitalized our balance sheet and eliminated a number of debilitating operational and financial impediments, we are now superbly positioned to take advantage of the tremendous growth opportunities in the alternative fuels market and become the preeminent provider of cleaner burning fuels for the domestic and international markets,” Hacioglu stated in the press release.

The Chapter 11 filing had no effect on the company’s daily business operations, and the company was able to convert its senior credit facility into about 66 percent of the common stock of the reorganized company. The remaining balance settled for cash and a $9.8 million four-year term loan.

The company remains a public entity, and after regulatory review and creditor share distribution, the company anticipates trading on a new symbol to reflect the name Applied Natural Gas Fuels Inc.

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