Cash Store Financial Obtains Stay Extension and Additional DIP Financing 8/12/2014 12:00:00 AM
EDMONTON, August 12, 2014 – The Cash Store Financial Services Inc. (“Cash Store Financial” or the “Company”) announced that it has obtained an order from the Ontario Superior Court of Justice (Commercial List) (“the Court”) granting a stay extension under its current Companies’ Creditors Arrangement Act (“CCAA”) 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 (“DIP”) financing agreement (“Further Amended DIP Agreement”) 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 Company’s business pursuant to the Court-approved Sale Process, under which prospective purchasers have had the opportunity to submit a bid for the Company’s 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 Company’s CCAA proceedings are available on the Monitor’s 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.
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