IRVINE, Calif., Dec. 21, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, announced that its major creditors and investors have given it overwhelming support and a major vote of confidence in the future growth of the Company for 2012 and beyond.
The Company's senior management held meetings with its largest creditors, some of which are private trusts, holding companies and high net worth individuals. These investors and creditors invested direct cash in Universal when it was still a development stage company with a limited operating history, limited revenues, negative earnings and limited stock liquidity. They accepted Notes with deferred payments with the option to convert them to stock, and were taking what was considered to be a high risk investment at that time. The creditors and investors have expressed continued confidence in the management team, its acquisitions and having generated double-digit revenue growth in the past two years. The Company generated revenues of $49.90 million for the nine month period ending September 30, 2011.
The major creditors and investors have indicated to management that after conferring with their financial advisors they will be holding their debt and equity positions in the Company, and currently have no plans to sell their respective shares into the marketplace. They have expressed confidence in managements business model, and its plans for growth and expansion, in what they see as a strong future for Universal in the energy industry. The creditors were very pleased with managements efforts to progressively build strong business fundamentals, increasing revenues, improving the balance sheet, stock liquidity, future acquisitions, the company's long-term growth, and they were less concerned about the current share price. They consider themselves long-term investors. Therefore, they will be extending the Company more credit and making additional investments into the Company in the future.
Universal's Senior Vice President Solomon Ali states, "We are really excited about their broad based support and strong vote of confidence in management and the Company. It certainly demonstrates they believe in a strong future for Universal, NDR Energy Group and the Whitesburg Coal Mine transaction in Kentucky. They have invested with us for several years now, and they will be long-term investors with us in the future, as we position the Company for listing on another stock exchange and to bring in institutional investors. The future investments should contribute to our future growth and increase our revenues and earnings. We believe this will 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.