TORONTO, July 16,
2024 /CNW/ - Chesswood Group Limited ("Chesswood"
or the "Company") (TSX: CHW) is providing a further
update on its plan to remedy its previously announced
non-compliance with its minimum borrowing base covenants under its
U.S. $300,000,000 syndicated
revolving credit facility (the "Credit Facility").
Credit Facility Action Plan
The waiver provided by the lending syndicate under the Credit
Facility, which was to expire on July 15,
2024, has been extended to August 2,
2024. The Company continues to engage in co-operative
discussions with the lending syndicate.
The Company remains focused on completing the negotiation and
settlement of definitive arrangements and documents for its Credit
Facility action plan.
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.
ABOUT CHESSWOOD GROUP LIMITED
Chesswood Group Limited is a Toronto,
Canada based holding company whose subsidiaries engage in
the business of specialty finance (including equipment finance
throughout North America and
vehicle finance and legal sector finance in Canada), as well as the origination and
management of private credit alternatives for North American
investors. Our shares trade on the Toronto Stock Exchange (under
the symbol CHW).
For information on Chesswood Group
Limited and its operating subsidiaries:
www.ChesswoodGroup.com
www.PawneeLeasing.com
www.TandemFinance.com
www.VaultPay.ca
www.VaultCredit.com
www.Rifco.net
www.WaypointInvestmentPartners.com
www.EasyLegal.ca
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 further
extension to the 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.
SOURCE Chesswood Group Limited
