IRVINE, Calif., Dec. 4, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG.PK), a publicly traded independent diversified energy company, that markets and distributes natural gas, propane and coal, announced the Company's Board of Directors is reviewing proposals to reduce its debt, improve shareholder returns and drive the Company toward profitability.
The Company is considering various proposals as part of its plans for growth, positioning itself to be more attractive to institutional investors and in its plans to qualify for NASDAQ or other major stock exchange. The proposals under consideration include greatly reducing or eliminating some or all its debts and liabilities, consolidation and negotiations of some creditors Notes with more favorable terms, and converting some or all of the long debt and liabilities to shares of preferred stock for issuance to the various Note Holders and creditors. This should result in a significant improvement in the Company's Balance Sheet, reduce debt, lower operating costs, improve working capital, improve cash flow, increase profitability and shareholder returns.
Universal's Senior Vice President, Solomon Ali states, "We feel that by taking the actions to reduce our debts and liabilities, this will put us in a stronger position to invest in our future. Many of our existing Notes carry interest rates that are high, and that are above the current market rates. The benefit to the Company is to eliminate the outstanding debt and liabilities owed by the Company, reduce interest expenses, enhance our financial position and strengthen the Balance Sheet. It should also have a very positive affect on the price of our stock, increase its liquidity and improve the market value of the Company. By taking these actions, it should also improve our near term profitability, and allow us to aggressively accelerate our plans for more mergers and acquisitions to grow the Company. This should also be of great benefit to our shareholders."
About Universal Bioenergy Inc.
Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784
Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
CONTACT: For inquiries contact: Media Relations: Solomon Ali at 704-837-5705
Source:Universal Bioenergy Inc.