EDMONTON, May 16, 2014 /CNW/ - The Cash Store Financial Services Inc.
("Cash Store Financial" or the "Company") (TSX: CSF) announced today
that it was not able to file an interim financial report and interim
management's discussion and analysis for the period ended March 31,
2014, together with the related certification of filings (collectively,
the "Continuous Disclosure Documents") by May 15, 2014, the deadline
prescribed by securities legislation.
Cash Store Financial's inability to file these materials is attributable
to the circumstances of the Company's ongoing court-supervised
restructuring process under the Companies' Creditors Arrangement Act (the "CCAA"). In particular, the expense and effort involved in
complying with the quarterly reporting requirements cannot, in the
opinion of the Company, be justified in light of the Company's current
operational and financial situation. Cash Store Financial intends to
file the Continuous Disclosure Documents as soon as is commercially
reasonable, or as required by the Court.
Under the CCAA proceedings, FTI Consulting Canada Inc. was appointed by
the Court as Monitor. Since the CCAA proceedings commenced, in
compliance with the CCAA and the order of the Court in the CCAA
proceedings, Cash Store Financial has provided the Monitor will full
access to its accounting records. The Monitor has filed with the Court
periodic reports which have included Cash Store Financial's cash flow
projections and other financial information concerning the Company. The
Company anticipates that the Monitor will continue to file reports with
the Court (and post them on its website) updating relevant financial
information concerning the Company. The Monitor's reports and Court
records are available online on its website at: http://cfcanada.fticonsulting.com/cashstorefinancial/.
Cash Store Financial intends to comply with the alternative information
guidelines as set out in National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults throughout the default period. In that regard, Cash Store Financial will
issue default status reports in the form of news releases that include
information relating to material changes in the information contained
in this news release and material information concerning Cash Store
Financial's affairs that has not been generally disclosed. Cash Store
Financial also intends to file with the applicable securities
regulatory authorities throughout the default period the same
information it provides to its creditors when the information is
provided to its creditors (other than confidential material if
disclosure of that information would be unduly detrimental to the
interests of Cash Store Financial) and in the same manner as it would
file a material change report under Part 7 of National Instrument
51-102 Continuous Disclosure Requirements.
About Cash Store Financial
Cash Store Financial operates 506 branches across Canada under the
banners "Cash Store Financial" and "Instaloans". Cash Store Financial
also operates 27 branches in the United Kingdom.
Cash Store Financial and Instaloans primarily act as lenders to
facilitate short-term advances and provide other financial services to
income-earning consumers who may not be able to obtain them from
traditional banks. Cash Store Financial also provides a private-label
debit card (the "Freedom" card) and a prepaid credit card (the "Freedom
MasterCard") as well as other financial services, including bank
accounts.
Cash Store Financial is headquartered in Edmonton, Alberta.
Cash Store Financial is a Canadian corporation that is not affiliated
with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd.
operates in the United States under the name "Cash Store". Cash Store
Financial does not do business under the name "Cash Store" in the
United States and does not own or provide any consumer lending services
in the United States.
For further information, please contact:
William Aziz, Chief Restructuring Officer, at baziz@bluetreeadvisors.com
Forward Looking Statements:
This news release contains certain forward-looking statements about the
objectives, strategies, financial conditions, results of operations and
businesses of Cash Store Financial. Statements that are not historical
facts are forward-looking and are subject to important risks,
uncertainties and assumptions. These statements are based on our
current expectations about our business, and upon various estimates and
assumptions. The results or events predicted in these forward-looking
statements may differ materially from actual results or events if known
or unknown risks, trends or uncertainties affect our business, or if
our estimates or assumptions turn out to be inaccurate. As a result,
there is no assurance that the circumstances described in any
forward-looking statement will materialize. Significant and reasonably
foreseeable factors that could cause our results to differ materially
from our current expectations, include, but are not limited to, any
decision of the Ontario Superior Court of Justice in the CCAA
proceedings that is adverse to Cash Store Financial, the inability of
Cash Store Financial to fulfill the conditions to funding under any DIP
financing agreement to be entered into by Cash Store, Cash Store
Financial's ability to secure sufficient resources to prepare the
Continuous Disclosure Documents, and other factors that could affect
Cash Store Financial's ability to continue its operations during the
CCAA proceeding, including the factors that are discussed in the
section entitled "Risk Factors" contained in our Annual Information
Form for the year ended September 30, 2013 dated December 11, 2013
filed by The Cash Store Financial Services Inc. with the Canadian
securities commissions (available on SEDAR at www.sedar.com ), as
updated in our most recent Management's Discussion and Analysis for the
three months ended December 31, 2013. Unless required by law, we
disclaim any intention or obligation to update any forward-looking
statement even if new information becomes available, as a result of
future events or for any other reason.
SOURCE The Cash Store Financial Services Inc.