Franchise Services of North America Inc. Announces Closing of Advantage Asset
Sale to Catalyst
TSX-V Trading Symbol: FSN
RIDGELAND, MS, April 30, 2014 /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"), completed the sale today of 41 United States airport
concession agreements used in the Advantage business to The Catalyst Capital
Group, Inc. (on behalf of one or more funds managed by it) ("Catalyst").
Catalyst was selected as the prevailing purchaser in an auction of the
Advantage assets conducted in accordance with bidding procedures approved by
the United States Bankruptcy Court for the Southern District of Mississippi
(the "Court") in the Simply Wheelz insolvency proceedings. Catalyst had
previously been approved by the Court as a secured lender in the proceedings.
Pursuant to the terms of the asset purchase agreement approved by the Court,
the consideration for the Catalyst Asset Sale was a credit bid of US$46
million against the debtor-in-possession credit facility provided by Catalyst
to Simply Wheelz, plus the assumption by Catalyst of certain liabilities of
the Advantage business associated with such concession agreements. Catalyst
also assumed certain leases, executory contracts, personal property and
intellectual property used in connection with the Advantage business.
Simply Wheelz filed for bankruptcy protection under the United States
Bankruptcy Code on November 5, 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.
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.
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.,
To view this news release in HTML formatting, please use the following URL:
CO: Franchise Services of North America Inc.
NI: AUT INS
-0- May/01/2014 03:42 GMT
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