Juschilln
11 years ago
Cash Store Financial Obtains Stay Extension and Additional DIP Financing 8/12/2014 12:00:00 AM
EDMONTON, August 12, 2014 โ The Cash Store Financial Services Inc. (โCash Store Financialโ or the โCompanyโ) announced that it has obtained an order from the Ontario Superior Court of Justice (Commercial List) (โthe Courtโ) granting a stay extension under its current Companiesโ Creditors Arrangement Act (โCCAAโ) proceedings to September 30, 2014.
The Court also authorized the Company and its subsidiaries to enter into an amendment to its amended and restated debtor-in-possession (โDIPโ) financing agreement (โFurther Amended DIP Agreementโ) pursuant to which an aggregate amount of up to $5 million will be available to the Company to permit it to continue operations during the CCAA proceedings in an effort to maximize enterprise value for all stakeholders. Further DIP financing is required in order to continue going concern operations and attempt to complete a sale of the Companyโs business pursuant to the Court-approved Sale Process, under which prospective purchasers have had the opportunity to submit a bid for the Companyโs property.
Discussions and negotiations with potential bidders are ongoing under the Sales Process. The Further Amended DIP Agreement will provide the necessary liquidity throughout the stay extension to continue to negotiate a sale transaction to achieve a value maximizing going concern outcome.
The Court also today approved the Sixth, Seventh and Eighth Reports of the Monitor, FTI Consulting Canada Inc., dated June 6, 2014, June 13, 2014, and July 21, 2014 respectively. Copies of these Reports, as well as other orders of the Court, including details on the sales process, as well as other details regarding the Companyโs CCAA proceedings are available on the Monitorโs website at http://cfcanada.fticonsulting.com/cashstorefinancial.
Cash Store Financial remains open for business. Cash Store will continue to provide updates on its restructuring and the Cash Store Transaction as matters advance.