TORONTO, Jan. 7 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm" or
the "Company") reported today that the Company is withholding the
continuing fee payment owing to its franchisor Yum! Restaurants
International (Canada) Company in the amount of $2 million that was due
on January 5, 2011.
The Company remains in active discussions with both its franchisor and
its senior debt lender with respect to short-term and long-term
refinancing as well as obtaining the necessary forbearance agreements.
There can be no assurance on any resolution that will result from these
discussions however the parties are working towards a satisfactory
As previously announced, the Company has entered into an asset purchase
agreement to sell its restaurants in Ontario and British Columbia and
such proposed transaction is subject to, among other things,
satisfactory due diligence and financing by the purchaser by January
15, 2011. The Company expects to provide a further update to the public
shortly after such date.
About Priszm Income Fund
Priszm Income Fund (TSX: QSR.UN) holds approximately a 60 per cent
interest in Priszm Limited Partnership, which owns and operates more
than 400 quick service restaurants in seven provinces across Canada.
The KFC, Taco Bell and Pizza Hut restaurants under Priszm serve more
than one million customers a week and employ approximately 7,300
people. Approximately 100 locations are multi-branded, combining two or
more of the Fund's restaurant concepts.
To find out more about Priszm Income Fund (TSX: QSR.UN), visit our
website at http://www.priszm.com
Certain information in this document may constitute forward-looking
statements within the meaning of securities laws that involve known and
unknown risks, uncertainties, future expectations and other factors
with respect to industry sector performance, business plans,
activities, trends and events anticipated by the Company and which may
cause the Company's future performance and results to be materially
different from those implied by the forward-looking information. In
some cases, forward-looking statements can be identified by terminology
such as "may," "will," "should," "expect," "plan," "anticipate,"
"believe," "estimate," "predict," "potential," "continue," or the
negative of these terms or other comparable terminology concerning
matters that are not historical facts. Forward-looking information is
based on certain factors and assumptions regarding, among other things,
the number of restaurants, the renewal of the franchise agreements,
ability to meet capital expenditure requirements, the industry sector
performance, business plans, activities, success of refinancing on
commercially viable terms, trends and events anticipated by the
Company. Although the Company believes that the assumptions underlying
such statements are reasonable, any of the assumptions may prove to be
inaccurate and, as a result, the forward-looking information may prove
to be incorrect. The forward-looking information, assumptions and
statements reflect the views of the Company's management with respect
to future events and outcomes as of the date of this document and there
should be no expectation that such information will be updated, revised
and/or supplemented whether as a result of new information, changing
circumstances, future events or other cause. Actual events or outcomes
may be materially different and cause the performance of the Company to
differ materially from any forward-looking statement.
SOURCE Priszm Income Fund
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