TORONTO, Sept. 29, 2015 /CNW/ - 1511419 Ontario Inc., formerly known as The Cash Store Financial Services Inc. (the "Company") and its affiliates announces that it has served materials to seek an order from the Ontario Superior Court of Justice (Commercial List) ("the Court") granting permission to hold meetings of the Company's secured creditors to consider and vote on a plan of compromise and arrangement ("the Plan") between the Company, its secured creditors and certain other persons who are party to a number of settlement agreements that are reflected in the Plan. These settlement agreements relate to consumer class actions and securities class actions that have been commenced against the Company and certain of its directors and officers and to certain other litigation that has been commenced by the Company against its directors and officers and against other parties. Counsel in respect of the applicable class actions have also served materials seeking approval of notice materials relating to the class actions. These motions will be heard by the Court on September 30, 2015.
If permission is obtained from the Court, the meetings will be held on November 10, 2015. Persons entitled to notice of the meetings or of the class action settlements will receive such notice as is provided for in the meetings order or in the class action materials, as applicable.
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 the settlement agreements among the Company and the other parties thereto and the distribution of the proceeds of those settlement agreements.
Full details regarding the Plan and the settlement agreements, as well as copies of the Plan, the settlement agreements and related documents, are available on the Monitor's website at http://cfcanada.fticonsulting.com/cashstorefinancial.
If the Plan is approved by the requisite majorities of affected creditors, the Company and its affiliates intend to seek court approvals of the Plan and the settlements at a hearing of the CCAA Court and the call action courts to be held on November 19, 2015, or such later date as the courts may set. The Company will continue to provide updates on its restructuring as matters advance.
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 to obtain any necessary regulatory approvals, the inability of the Company to fulfill the conditions to funding under any Debtor-in-Possession ("DIP") financing agreement entered into by the Company, any decision of the Ontario Superior Court of Justice in the CCAA proceedings that is adverse to the Company and other factors that could affect the Company'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 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