TORONTO, Dec. 31 /CNW/ - Priszm Income Fund (TSX: QSR.UN) ("Priszm" or
the "Company") reported today that the Company is withholding the
interest payment of $0.975 million on its $30 million convertible
debenture that was due on December 31st due to ongoing negotiations with its senior debt holder and
franchisor. The Company is not in the position to repay the senior
debt facility of $65.6 million which was due on December 31, 2010 and
as previously disclosed also withheld the interest payment on this
senior facility which was due earlier in December.
The Company remains in active discussions with both its franchisor and
the senior debt lender with respect to a refinancing and restructuring
of the business. There can be no assurance on any resolution that will
result from these discussions however the parties are working towards a
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 Priszm Income Fund
(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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