EDMONTON, May 13 /CNW/ - AutoCanada Income Fund ("AutoCanada")
(TSX:ACQ.UN) announced today that as a result of the previously announced
temporary suspension of floor plan financing by Chrysler Financial Canada, the
primary lender to AutoCanada, a special committee of independent directors,
comprised of Gordon Barefoot, Rusty Goepel and Mike Ross, has been formed to
review financing, restructuring and strategic alternatives. The special
committee has retained Raymond James as its exclusive financial advisor in the
process to find, review and analyze possible financing and such other
strategic alternatives as may be appropriate with the intent of protecting
unit holder value.
"Although Management has diligently managed the situation in the short
term, the temporary suspension of floor plan advances, at a time when credit
markets are experiencing a significant contraction generally, requires a long
term solution which needs to be resolved on a timely basis to ensure the
viability of the Fund. For such reason we have retained a financial advisor to
assist us in our review to ensure that unit holder value is protected for an
entity that continues to be profitable", stated Gordon Barefoot, Chair of the
Special Committee, noting that "AutoCanada reported net income of $1,054,000
for the period ended March 31, 2009."
AutoCanada is Canada's only publicly traded entity with interests
exclusively in the operation of franchised automobile dealerships. Through its
53% interest in AutoCanada LP, it presently owns or manages 22 franchised
automobile dealerships in six provinces and has over 1,100 employees. Through
its owned and managed dealerships, it currently sells Chrysler, Dodge,
Jeep(R), Infiniti, Nissan, Hyundai, Subaru, Volkswagen and Mitsubishi branded
vehicles. In 2008, its owned and managed dealerships sold approximately 23,700
vehicles, processed approximately 277,300 service and collision repair orders
in 284 service bays, and generated revenue of approximately $827 million.
Additional information about AutoCanada Income Fund is available at
www.sedar.com and the Fund's website at www.autocan.ca.
For further information:
For further information: Tom Orysiuk, CA, Executive Vice-President and
Chief Financial Officer, Phone: (780) 732-3139, Email: email@example.com