Simply Wheelz LLC selects Catalyst as the prevailing bidder
TSX-V Trading Symbol: FSN
RIDGELAND, MS, Dec. 10, 2013 /PRNewswire/ - FRANCHISE SERVICES OF NORTH AMERICA INC. ("FSNA" or the "Company") (FSN.V) announces that its wholly-owned subsidiary, Simply Wheelz LLC ("Simply Wheelz"), which does business as Advantage Rent A Car ("Advantage"), has selected The Catalyst Group, Inc. (on behalf of one or more funds managed by it) ("Catalyst") as the prevailing bidder in the auction of certain of the Advantage assets conducted in accordance with bidding procedures (the "Bid Procedures") approved by the United States Bankruptcy Court for the Southern District of Mississippi as part of the Simply Wheelz insolvency proceedings. Sixt SE ("Sixt") was designated as the back-up bidder under the Bid Procedures in the event that Simply Wheelz is not able to complete the sale transaction with Catalyst within the specified period of time.
Catalyst agreed, in connection with its bid, that it would continue to lend to Simply Wheelz on the existing terms of its credit facility, subject to a revised budget, which budget significantly increases the borrowing availability of Simply Wheels under the terms of its credit facility. In addition, there is the possible addition of fleet financing at the option of the Lender.
A final hearing on the Sale Motion filed by Simply Wheelz in the bankruptcy case is scheduled for December 17, 2013, at which time Simply Wheelz has requested the Bankruptcy Court to declare that Catalyst is the Prevailing Purchaser of the assets to be sold.
Simply Wheelz hopes to complete its sale to Catalyst in the first quarter of 2014. However, the Company cautions that there are a number of procedural matters and arrangements with third parties that will need to be completed before such sale is likely to be consummated.
Simply Wheelz' filed for U.S. federal bankruptcy protection on November 6, 2013.
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 including airport locations servicing 60 of the top 70 airports across the United States. 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.
Certain statements made in this news release are forward-looking in nature, including statements concerning the ability of Simply Wheelz to complete its sale transaction with Catalyst and the time at which such sale might be completed. The words "may", "could", "should", "would", "expect", "intend", "estimate", "anticipate", "believe", or "outlook" and similar expressions often identify forward-looking information. By their nature, forward-looking statements require FSNA to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements contained in this news release are based on certain key expectations and assumptions made by FSNA, including with respect to its ability to complete a sale transaction with Catalyst and the time at which such sale might be completed. Although FSNA believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because FSNA can give no assurance that they will prove to be correct. These forward-looking statements also involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FSNA to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include risks discussed in the section entitled "Risk Factors" in FSNA's management information circular dated March 28, 2013 filed with Canadian securities regulators. If any such risks actually occur, they could materially and adversely affect FSNA's business, financial condition or results of operations. FSNA's forward-looking statements are qualified in their entirety by these cautionary statements. In addition, the forward-looking statements are made only as of the date of this news release, and except as required by applicable securities law, FSNA undertakes no obligation to publicly update these forward-looking statements to reflect new information, subsequent events or otherwise.
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.