Update today
Futura seeks financing through bidding under CCAA
2013-01-04 15:42 CT - News Release
Mr. David Campbell reports
FUTURA PROVIDES BUSINESS UPDATE
The Futura Loyalty Group Inc. has been seeking opportunities through a bidding process under the Companies Creditors Arrangement Act for: (a) an investment in the company that would allow it to execute a business plan to achieve profitability; (b) a company with which to merge; and/or (c) entities that would be interested in acquiring some or all of its assets.
The company's intent was to complete one or more transactions with winning bidders by Dec. 31, 2012. Futura did receive numerous bids pursuant to the CCAA process and is continuing to negotiate with two parties with the intent of completing one or more transactions by Jan. 18, 2013, being the date which the company currently has court approval to operate under CCAA protection. If it appears that it will not be feasible to complete the transaction or transactions contemplated by Jan. 18, 2013, then Futura will likely seek an extension of its CCAA protection.
While the company is going through this process, the company continues to operate and transact issuance for existing and new customers. However, any rewards that were earned in the Futura rewards program prior to Oct. 16, 2012, being the date that Futura was granted CCAA protection, are considered amounts owing to unsecured creditors and will not be paid out. Proceeds on disposition of Futura's business and assets are unlikely to be sufficient to pay these amounts owing to Futura's unsecured creditors, which include Futura rewards members. That being said, Futura rewards earned from Oct. 16, 2012, onward will continue to accrue and be paid out in conjunction with the Futura rewards program guidelines, and it is possible that the party acquiring the Futura rewards program line of business would choose to reinstate some of the lost rewards, but this would be at the acquirer's discretion and entirely voluntary.
We seek Safe Harbor.