Aug. 6, 2013, 6:01 a.m. EDT
Global Axcess Corp Secures Asset Purchase Agreement with FCTI
JACKSONVILLE, Fla., Aug. 6, 2013 /PRNewswire via COMTEX/ -- Global Axcess Corp , a leading provider of ATM services and DVD self-service kiosks, announced today that it entered into as Asset Purchase Agreement with a "stalking horse bidder," Financial Consulting & Trading International, Inc. ("FCTI") a wholly owned subsidiary of Seven Bank, Ltd., to acquire substantially all of the assets of the Company's ATM operating business. The DVD assets will be sold under a separate process. The ATM business sale will potentially allow the Company to emerge with the strong financial backing of a new owner with substantial experience in the ATM industry.
To facilitate the sale, the Company and its business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Nevada. The Company has obtained a commitment from Fifth Third Bank for debtor-in-possession ("DIP") financing of approximately $1.5 million, subject to Court approval.
The Company intends to continue operating its business without interruption during the sale period and the Company remains confident in its existing pipeline of business opportunities. The Company maintains relationships with some of the top ATM industry service providers.
"The sale and filing are necessary next steps to complete the Company's transformation and position the Company for the future, as we remain confident in our existing pipeline of business opportunities and the strength of our service offering," said Kevin L. Reager, President of the Company. "We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible."
According to Sharon Jackson, who has been the Corporate Secretary since 1999, "We have incredible, creative talent here at the Company. We look forward to partnering with FCTI for a new start as we will continue to use our intellectual property assets to develop high-quality ATM-related products and services."
FCTI has agreed to serve as the "stalking horse bidder" for the sale process, which allows other interested parties to come forward with competing bids. Aggregate consideration offered by FCTI for the purchase totals approximately $10 million and the Company hopes to receive Bankruptcy Court approval to consummate the sale as soon as possible.
Customers should see no changes while the Company completes a sale. The new financing will support business operations throughout the period. The Company does not intend to reduce its workforce as a result of the filing, and employees will continue to work their usual schedules and receive normal compensation and benefits, pending customary Court approval.
The Company is being advised by MorrisAnderson and Golding & Company as its financial advisors and Smith, Gambrell & Russell as legal counsel. FCTI is being advised by Skadden, Arps, Slate, Meagher & Flom as legal counsel.
AI
