CHESSWOOD PROVIDES UPDATE ON STRATEGIC REVIEW AND CREDIT FACILITY ACTION PLAN AND ANNOUNCES SENIOR MANAGEMENT CHANGES
Strategic Review
The Committee, with the assistance and participation of its financial advisor, has continued to engage in discussions and negotiations for potential sales of key operating subsidiaries and considerations for how best to maximize value of the Company's large portfolios of lease and loan receivables for the Company's shareholders while also seeking to ensure that the interests of other key Company stakeholders are served.
A number of potential opportunities and strategies are being evaluated. While there can be no assurance as to the timing of finalizing negotiations or entering into definitive transaction documents, or that any such transactions will ultimately be agreed to, the Committee is working to complete its evaluations and settle definitive documents in the coming weeks – in conjunction with formalizing, and receiving any required lender approvals for, the Company's action plan to remedy the existing breach of the Credit Facility (described below).
Credit Facility Action Plan
After receiving the initial waiver in respect of the Credit Facility breach on
As a result of
The Company continues to engage in co-operative discussions with the lending syndicate under the Credit Facility.
There can be no assurance that any extensions to the waiver will be obtained or further advances under the Credit Agreement will be made. Further, there can be no assurance as to the timing for completion of any capital raise or sale transaction for the Company or one or more of its business units. As such, no undue reliance should be placed on any expectations as to the occurrence of any of the foregoing and any impact on the Company or shareholder value arising therefrom.
Management Changes
The Company also announces that
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FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release may include, but are not limited to, statements relating to the Committee's strategic review process including the ongoing pursuit of selling one or more of the Company's business units or the Company itself or any resulting winddown and evaluation of value enhancement opportunities, the Company's pursuit of arrangements to remedy, or in furtherance of an extension to the temporary waiver of, the Company's breach under the Credit Facility, if any, and other statements that are not material facts. Forward-looking statements are typically identified by words such as "believe", "expect", "anticipate", "project", "intend", "plan", "will", "may", "estimate" and other similar expressions or the negative of these words or variations of them or similar expressions.
Although the Company believes that the forward-looking statements in this press release are based on information and assumptions that are current, reasonable and complete, these statements are by their nature subject to a number of factors, risks and uncertainties, both general and specific in nature, that could cause actual results to differ materially form those expressed or implied by these forward-looking statements, including, without limitation, the possibility that a waiver in relation to the Credit Facility covenant breach may not be obtained and the availability, timing or completion of any other capital raise or sale transaction for all or part of the Company's business. The Company cautions that the foregoing assumptions and factors are not exhaustive and other factors could also adversely affect its results. For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the Company's publicly filed documents, including the Company's annual information form and management's discussion and analysis of financial condition and performance, which are available electronically at www.sedarplus.ca.
Unless otherwise noted or the context otherwise indicates, the forward-looking statements contained in this press release describe the Company's expectations as at the date of this press release and, accordingly are subject to change after such date. Except as may be required by applicable securities laws, the Company does not undertake any obligation to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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