TSX-V Trading Symbol: FSN
RIDGELAND, MS, Nov. 8, 2013 /CNW/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) provides the following update on the previously-announced
bankruptcy proceedings of the Company's wholly-owned subsidiary, Simply
Wheelz LLC ("Simply Wheelz"), which does business as Advantage Rent A Car, in the United States
Bankruptcy Court for the Southern District of Mississippi (the "Court").
On November 7, 2013, the Court entered interim orders authorizing Simply
Wheelz to, among other things: (i) make payments to certain critical
vendors, (ii) assume executory contracts with certain online travel
agents, (iii) honor prepaid reservations from its customers, (iv) pay
employee and independent contractor wages and associated taxes and
benefits, and (v) make certain airport concession payments, in each
case in accordance with the terms and conditions of the respective
On November 8, 2013, the Court entered an interim order approving a
US$20 million line of credit facility for Simply Wheelz.
Simply Wheelz is scheduled to appear before the Court on December 3,
2013 to request final approval of a US$36 million line of credit and
other matters approved to date.
FSNA is a publicly traded company listed on the TSX Venture Exchange.
The Company and its subsidiaries own the following brands: Advantage
Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental
Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
The Company operates the Advantage car rental brand at 72 corporate
locations in 33 states. Advantage has airport locations servicing 60
of the top 70 airports across the United States and those airports
account for more than US$10 billion in annual car rental revenue.
Advantage is the fourth largest independent rental car company in the
U-Save, together with its subsidiary ARRC, has over 900 locations
throughout the United States and is one of North America's largest
franchise car rental companies. U-Save currently services 19 airport
markets in 13 different states. Although primarily based in the United
States, U-Save has 18 international locations in Mexico, Greece, the
Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the
PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system
operates a network of 61 franchise locations from coast-to-coast in
Canada, providing a range of vehicle rental, leasing and sales options
to its customers. The Rent-A-Wreck® system has been in continuous
operation in Canada since 1976.
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.
For further information:
For further information on FSNA or any of its operating subsidiaries please contact:
Thomas P. McDonnell, III
Franchise Services of North America Inc.