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IRVINE, Calif., Feb. 28, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), a natural and alternative energy company, announced that its Board of Directors has approved a major financial restructuring plan to reduce its debt, strengthen its Balance Sheet, and generate more profits and returns for its shareholders.
The Company plans to restructure its Balance Sheet by reducing its debt and liabilities. Universal's total liabilities were $3,355,988, for the period ending September 30, 2010. This was primarily due to a $2,335,452 increase in accounts payable from purchasing supplies of natural gas, accrued expenses, and costs incurred from the NDR Energy acquisition. The plans include capital restructuring, paying down debt, and converting the balance of the outstanding debt to common stock, for issuance to its various Note Holders and creditors.
"Our plans are to continue to improve our financial performance and earnings. Many of the existing Notes carry very high interest rates. The benefit to the Company is to eliminate our debt, reduce interest expenses, and strengthen the Balance Sheet. We feel, taking these actions will improve our profitability, allow us to pursue our strategies for our expansion, and invest in our future," says Vince M. Guest, President and CEO of Universal.
Universal's Vice President Solomon Ali states, "Since we have created more value to the Company, through our recent acquisitions, and we've applied to be listed on the Frankfort Stock Exchange, we believe this should make our stock attractive to more retail and institutional investors internationally. This will result in increasing the outstanding shares of the Company's common stock. However, we believe the shareholders would receive greater financial rewards by means of a greater market value of the Company, increased liquidity, and a potential increase in the price of the stock."
About The Company
Universal Bioenergy Inc. is an alternative energy company, and intends to create and market natural and alternative energy sources including natural gas, solar, biofuels, wind, synthetic fuels and related energy technology products. It plans to build the company into a prominent player in alternative energy.