RIDGELAND — The Alberta Securities Commission (ASC) has issued a cease trade order against Franchise Services of North America Inc. (FSNA).
The order was issued due to FSNA failing to file its audited annual financial statements and its related management’s discussion and analysis and certification of annual filings for the year ended Sept. 30, 2013, and failing to file its interim financial report, related management’s discussion and analysis and certification of interim filings for the period ended Dec. 31, 2013, in each case prior to the deadline of March 28, 2014, set forth in the management cease trade order (MCTO) previously granted to FSNA by the ASC.
On Jan. 29, FSNA was granted the MCTO in accordance with National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults. Pursuant to the requirements of the alternative information guidelines set forth in NP 12-203, FSNA has, following the granting of the MCTO by the ASC, issued bi-weekly default status updates in connection with the MCTO.
Since the issuance of its last default status update on March 14, FSNA determined that it would be unable to complete the required filings by the MCTO deadline. The company reports it continues to work with its auditors to prepare and finalize the required filings. FSNA anticipates that it will be in a position to file the annual filings on or before April 18 and the interim filings on or before May 17.
As a result of not being able to complete the required filings by the MCTO deadline, the ASC issued the cease trade order against FSNA. All trading in the securities of the company will cease until the company files the required filings and makes an application for a full revocation of the cease trade order.
FSNA has given an update on the previously announced proposed sale of certain assets used in connection with the business of FSNA’s wholly owned subsidiary, Simply Wheelz, LLC, which does business as Advantage Rent A Car.
The Catalyst Capital Group Inc. (on behalf of one or more funds managed by it) was selected as the prevailing purchaser in an auction of the Advantage assets conducted in accordance with the bidding procedures approved by the United States Bankruptcy Court for the Southern District of Mississippi in the Simply Wheelz insolvency proceedings. Catalyst had previously been approved by the Court as a secured lender in the proceedings.
The asset sale is currently scheduled to be completed on or before April 30. However, FSNA cautions that there are a number of procedural matters and arrangements with third parties that will need to be completed before such sale is likely to be consummated.
Simply Wheelz filed for U.S. federal bankruptcy protection on Nov. 6, 2013.
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