FairWest defaults on 14% secured subordinated series 1 convertibles

Company also expects to default on 14% secured series 2 convertibles

By Devika Patel

Knoxville, Tenn., Nov. 28 - FairWest Energy Corp. said it is in default on its 14% secured subordinated series 1 convertible debentures as of Nov. 27. The default stems from the company not paying the debentures at maturity.

The company also announced it is in default for not paying interest on the debentures for the period of Nov. 1 to Nov. 27.

In addition, on Dec. 7, the company will be in default for not paying the November interest due on its 14% secured subordinated series 2 convertible debentures and expects that it will not be able to redeem these debentures on their maturity date of Dec. 31, 2012.

Both debentures continue to bear interest at 14%.

FairWest also said it has decided to cancel the previously announced private placement of 10% secured subordinated series 3 convertible debentures and said it is reviewing alternatives in order to meet its payment obligations on the debentures.

FairWest is an oil and natural gas company based in Calgary, Alta.

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