TSX-V Trading Symbol: FSN
RIDGELAND, MS, April 10, 2018 /CNW/ - FRANCHISE SERVICES
OF NORTH AMERICA INC. ("FSNA"
or the "Company") (FSN.V) today announced that on December 18, 2017, the United States Bankruptcy
Court for the Southern District of Mississippi dismissed the chapter 11
bankruptcy case originally filed by FSNA in June 2017. The
Bankruptcy Court found that the bankruptcy case was improperly
filed and FSNA appealed the Bankruptcy Court's decision to the
United States Fifth Circuit Court of Appeals. On February 8, 2018, the Fifth Circuit accepted
FSNA's appeal with expedited consideration. Oral Arguments
will take place before the Fifth Circuit in late April
2018.
The Company's initial decision to seek bankruptcy protection was
necessitated by several factors, including liquidity issues
associated with expenses incurred in pending litigation by and
against its former financial advisor, Macquarie Capital
(USA), Inc., and two Macquarie
employees who also served as directors of the Company, as well as
other legacy claims against the Company. The Company's
litigation expenses relate to the Company's acquisition of Simply
Wheelz LLC, d/b/a Advantage Rent A Car, which was led by Macquarie
and its affiliates. The Company also remains impaired by
potential claims that arise from the Advantage
acquisition.
While the bankruptcy case is on appeal to the Fifth Circuit, the
Macquarie parties and FSNA reached an agreement to temporarily
cease any adversary proceedings, including litigation, until the
issuance of the mandate of the Fifth Circuit.
About FSNA
FSNA is a publicly traded company listed on the NEX Board of the
TSX Venture Exchange. The Company and its subsidiaries own the
following brands: U-Save Car & Truck Rental® ("U-Save"),
U-Save Car Sales, Auto Rental Resource Center ("ARRC"),
Xpress Rent A Car, Sonoran National Insurance Group and Peakstone
Financial Services.
U-Save, together with its subsidiary ARRC, has over 650
locations throughout the United
States and is one of North
America's largest franchise car rental companies. U-Save
currently services 21 airport markets in 9 different states and 12
countries. Although primarily based in the United States, U-Save has 16 international
locations in Mexico, Greece, Central
America and the Caribbean.
With more than 150 years of combined insurance experience,
Sonoran National Insurance Group is licensed in all 50 states and
serves customers in every part of the country. Sonoran provides an
entire range of business and personal insurance solutions
customized to the needs of its clients.
Forward-Looking Information:
Certain statements made in this news release are
forward-looking in nature, including statements concerning
the ability of FSNA's subsidiaries to operate in the ordinary
course following an insolvency filing. The words "may", "could",
"should", "would", "expect", "intend", "estimate", "anticipate",
"believe", or "outlook" and similar expressions often identify
forward-looking information. By their nature, forward-looking
statements require FSNA to make assumptions and are subject to
inherent risks and uncertainties. The forward-looking statements
contained in this news release are based on certain key
expectations and assumptions made by FSNA, including with respect
to general economic, market and industry conditions. Although FSNA
believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because FSNA
can give no assurance that they will prove to be correct. These
forward-looking statements also involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of FSNA to differ materially from the
anticipated results, performance or achievements or developments
expressed or implied by such forward-looking statements. If any
such risks actually occur, they could materially and adversely
affect FSNA's business, financial condition or results of
operations. FSNA's forward-looking statements are qualified in
their entirety by these cautionary statements. In addition, the
forward-looking statements are made only as of the date of this
news release, and except as required by applicable securities law,
FSNA undertakes no obligation to publicly update these
forward-looking statements to reflect new information, subsequent
events or otherwise.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Franchise Services of North America Inc.