Franchise Services of North America Inc. provides update on Simply Wheelz LLC bankruptcy proceedings
TSX-V Trading Symbol: FSN
RIDGELAND, MS, Nov. 8, 2013 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) provides the following update on the previously-announced bankruptcy proceedings of the Company's wholly-owned subsidiary, Simply Wheelz LLC ("Simply Wheelz"), which does business as Advantage Rent A Car, in the United States Bankruptcy Court for the Southern District of Mississippi (the "Court").
On November 7, 2013, the Court entered interim orders authorizing Simply Wheelz to, among other things: (i) make payments to certain critical vendors, (ii) assume executory contracts with certain online travel agents, (iii) honor prepaid reservations from its customers, (iv) pay employee and independent contractor wages and associated taxes and benefits, and (v) make certain airport concession payments, in each case in accordance with the terms and conditions of the respective order.
On November 8, 2013, the Court entered an interim order approving a US$20 million line of credit facility for Simply Wheelz.
Simply Wheelz is scheduled to appear before the Court on December 3, 2013 to request final approval of a US$36 million line of credit and other matters approved to date.
FSNA is a publicly traded company listed on the TSX Venture Exchange. The Company and its subsidiaries own the following brands: Advantage Rent A Car, U-Save Car & Truck Rental® ("U-Save"), U-Save Car Sales, Rent-A-Wreck of Canada, PractiCar, Auto Rental Resource Center ("ARRC"), Xpress Rent A Car and Peakstone Financial Services.
The Company operates the Advantage car rental brand at 72 corporate locations in 33 states. Advantage has airport locations servicing 60 of the top 70 airports across the United States and those airports account for more than US$10 billion in annual car rental revenue. Advantage is the fourth largest independent rental car company in the United States.
U-Save, together with its subsidiary ARRC, has over 900 locations throughout the United States and is one of North America's largest franchise car rental companies. U-Save currently services 19 airport markets in 13 different states. Although primarily based in the United States, U-Save has 18 international locations in Mexico, Greece, the Middle East, Latin America, and the Caribbean.
Practicar Systems Inc. owns the rights to the Rent-A-Wreck® and the PractiCar® trademarks for all of Canada. The Rent-A-Wreck® system operates a network of 61 franchise locations from coast-to-coast in Canada, providing a range of vehicle rental, leasing and sales options to its customers. The Rent-A-Wreck® system has been in continuous operation in Canada since 1976.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Franchise Services of North America Inc.