TORONTO, Nov. 26, 2015 /CNW/ - 1511419 Ontario Inc., formerly known as The Cash Store Financial Services Inc. (the "Company") and its affiliates today announced the outcome of several court proceedings related to the Company's plan of compromise and arrangement (the "Plan") under the Companies' Creditors Arrangement Act ("CCAA"). The Company previously announced the required majorities of Senior Secured Lenders and Secured Noteholders of the Company, respectively, voted to pass a resolution approving the Plan.
The Plan relates to (i) the distribution of the proceeds of the previously announced transaction with National Money Mart Company, the previously announced transaction with easyfinancial Services Ltd. and an additional transaction with CSF Asset Management Ltd. (the "Asset Sales"), and (ii) the approval of certain settlement agreements among the Company and the other parties thereto and the distribution of the proceeds of those settlement agreements.
Specifically, the Company announced that:
- On November 19, 2015, the Ontario Superior Court of Justice (Commercial List) ("Ontario Court") approved the Company's Plan;
- On November 19, 2015, the Ontario Court and the Manitoba Court of the Queen's Bench each approved the settlement agreements entered into by the Company, its affiliates and certain of its former directors and officers with respect to a number of class actions and other litigation, including in respect of consumer class action litigation commenced across Canada, certain disputes among the Company and DirectCash Payments Inc. and its affiliates and securities class action litigation commenced in Ontario, Alberta, Quebec and the Southern District of New York;
- On November 25, 2015, the United States Bankruptcy Court for the Southern District of New York granted an order recognizing the ongoing CCAA proceedings before the Ontario Superior Court of Justice (Commercial List) as a "foreign main proceeding" under section 1517 of the United States Bankruptcy Code and giving full force and effect in the United States to certain provisions of the Plan, as approved by the Plan Sanction Order. Obtaining this order was a condition precedent to the implementation of the Plan and the settlement agreements contemplated by the Plan.
The Company is working to satisfy the remaining conditions precedent to the Plan and intends to implement the Plan in accordance with its terms in due course.
The Company also advised that the Plan contemplates that the Company's Chief Restructuring Officer will be discharged upon implementation of the Plan. Accordingly, the Monitor has been granted heightened powers to direct the activities of the Company and its affiliates to address any remaining items in the CCAA proceedings after the discharge of the Chief Restructuring Officer. In addition, a litigation trustee has been appointed pursuant to the Plan to continue certain claims that the Company has against persons who are not parties to the settlement agreements.
Full details regarding the Plan and the settlement agreements, as well as copies of the Plan, the settlement agreements, Court order and related documents, are available on the Monitor's website at http://cfcanada.fticonsulting.com/cashstorefinancial.
About the company formerly known as The Cash Store Financial Services Inc.
The company formerly known as The Cash Store Financial Services Inc. 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". The Company 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 the company formerly known as The Cash Store Financial Services Inc. Statements that are not historical facts are forward-looking and are subject to important risks, uncertainties and assumptions. In particular, statements about the receipt of any court or other approvals, the anticipated outcomes of any motion or transaction described above and any other statements about the Company's future expectations, goals, beliefs or prospect are forward looking information. These statements are based on our current expectations about our business, and upon various estimates and assumptions. Significant and reasonably foreseeable factors that could cause our results to differ materially from our current expectations, include, but are not limited to, the inability of the Company to obtain any court approvals in respect of its CCAA proceedings or the inability to obtain such approvals on the expected terms or schedule, , the inability of the Company to fulfill any of the conditions precedent to the implementation of the Plan, any decision of the Ontario Superior Court of Justice that is adverse to the Company and other factors that could affect the Company's ability to continue its operations during the CCAA proceeding or to implement the Plan, 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 with the Canadian securities commissions (available on SEDAR at http://www.sedar.com), as updated in our most recent Management's Discussion and Analysis for the three months ended December 31, 2013. 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. 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: William Aziz, Chief Restructuring Officer, [email protected]; Media: Joel Shaffer, Longview Communications, 416-649-8006