TSX-V Trading Symbol: FSN
RIDGELAND, MS, Dec. 10, 2013 /CNW/ - 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
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
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,
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
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
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.
For further information on FSNA or any of its operating subsidiaries please
contact: Thomas P. McDonnell, III Franchise Services of North America Inc.
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CO: Franchise Services of North America Inc.
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-0- Dec/11/2013 06:00 GMT
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