EDMONTON, April 14, 2014 /CNW/ - The Cash Store Financial Services Inc.
("Cash Store Financial" or the "Company") (TSX: CSF) announced today
that, further to its news release issued earlier today, the Ontario
Superior Court of Justice (Commercial List) ("Court") has issued an
order granting the Company's application for creditor protection under
the Companies' Creditors Arrangement Act ("CCAA"). FTI Consulting
Canada Inc. will serve as the Court-appointed Monitor in the CCAA
proceedings to oversee the operations of the Company and report to the
Court during the restructuring.
The Court determined that the Company's request for approval of
debtor-in-possession financing ("DIP Financing") will be considered at
a hearing scheduled for tomorrow to afford the Court time to consider
competing DIP Financing Proposals.
The decision to commence CCAA proceedings was made after extensively
exploring alternatives following thorough consultation with its legal
and financial advisors. The Company sought protection to address near
term liquidity issues, which were caused in part by certain regulatory
actions taken in Ontario that impacted on the Company's primary product
offering in that jurisdiction. In light of these and other matters,
Cash Store Financial's board of directors determined that a CCAA
proceeding is the most prudent and effective way to carry on business
and maximize value for the Company's stakeholders.
Cash Store is committed to completing the restructuring process quickly
and efficiently. The Company remains open for business, its branches
continue to operate and daily lending is continuing.
About Cash Store Financial
Cash Store Financial is the only lender and broker of short-term
advances and provider of other financial services in Canada that is
listed on the Toronto Stock Exchange (TSX: CSF). Cash Store Financial
operates 510 branches across Canada under the banners "Cash Store
Financial" and "Instaloans". Cash Store Financial also operates 27
branches in the United Kingdom.
Cash Store Financial and Instaloans primarily act as lenders and brokers
to facilitate short-term advances and provide other financial services
to income-earning consumers who may not be able to obtain them from
traditional banks. Cash Store Financial also provides a private-label
debit card (the "Freedom" card) and a prepaid credit card (the "Freedom
MasterCard") as well as other financial services, including bank
Cash Store Financial is headquartered in Edmonton, Alberta.
Cash Store Financial is a Canadian corporation that is not affiliated
with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd.
operates in the United States under the name "Cash Store". Cash Store
Financial does not do business under the name "Cash Store" in the
United States and does not own or provide any consumer lending services
in the United States.
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Cash Store Financial. Statements that are not historical
facts are forward-looking and are subject to important risks,
uncertainties and assumptions. These statements are based on our
current expectations about our business, and upon various estimates and
assumptions. The results or events predicted in these forward-looking
statements may differ materially from actual results or events if known
or unknown risks, trends or uncertainties affect our business, or if
our estimates or assumptions turn out to be inaccurate. As a result,
there is no assurance that the circumstances described in any
forward-looking statement will materialize. Significant and reasonably
foreseeable factors that could cause our results to differ materially
from our current expectations, include, but are not limited to, a
decision of the Ontario Superior Court of Justice not to grant the
relief being sought by Cash Store Financial, the inability of Cash
Store Financial to fulfill the conditions to funding under any DIP
financing agreement to be entered into by Cash Store, and other factors
that could affect Cash Store Financial's ability to continue its
operations during the CCAA proceeding, including the factors that are
discussed in the section entitled "Risk Factors" contained in our
Annual Information Form for the year ended September 30, 2013 dated
December 11, 2013 filed by The Cash Store Financial Services Inc. with
the Canadian securities commissions (available on SEDAR at www.sedar.com ), as updated in our most recent Management's Discussion and Analysis
for the three months ended December 31, 2013. Unless required by law,
we disclaim any intention or obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason.
SOURCE: The Cash Store Financial Services Inc.
For further information:
For further information, please contact:
Gordon Reykdal, CEO, at 780-408-5118,
Craig Warnock, CFO, at 780-732-5683, or
Peter Block, NATIONAL Public Relations, 416-848-1431