EDMONTON, Dec. 18, 2013 /CNW/ - Carfinco Financial Group Inc. ("Carfinco") today announces that following a competitive bidding process Carfinco chose not to provide the highest purchase price in its bid to acquire, and will not be acquiring, the new equity ownership interests of Western Funding Incorporated ("WFI") and Global Track GPS LLC ("Global Track," and together with WFI, the "Companies") headquartered out of Las Vegas, Nevada. On November 1, 2013, Carfinco had previously announced that it had become the "stalking horse bidder" and proposed plan sponsor for the Companies, each of which had commenced a chapter 11 bankruptcy case on September 4, 2013 in the United States Bankruptcy Court for the District of Nevada (the "Court"). Amongst other conditions, the completion of the transactions was subject to a sale process for competing bids, which took place today.
"The bidding reached a purchase price which exceeded management's upper threshold for risk versus returns on equity deployed," stated Tracy Graf, CEO of Carfinco. "Management will continue to actively pursue potential acquisitions in Canada and in the U.S. that will add value to our shareholders."
About Carfinco Financial Group Inc.
Carfinco, through its Canadian and US subsidiaries (the "Subsidiaries"), focuses on providing indirect consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer the Subsidiaries payment plans to their customers who must, along with the vehicle, meet the Subsidiaries underwriting guidelines. The shares of Carfinco trade on The Toronto Stock Exchange under the symbol "CFN".
Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
SOURCE: Carfinco Financial Group Inc.
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