TORONTO, ONTARIO--(Marketwired - Sept. 19, 2016) - Chesswood Group Limited ("Chesswood") (TSX:CHW) announced today that Windset Capital Corporation ("Windset"), its U.S. working capital loan subsidiary, will discontinue accepting new loan applications from its brokers and independent sales organization network effective September 26, 2016, but will continue to service all of the loans in its portfolio for the entire duration of their terms. It is not expected that any material losses or costs will result from these steps.
"After three years of serving the short-term working capital market and dedicating 100% of Windset's resources to the broker/ISO community, we have made the strategic decision to exit the working capital loan market and focus solely on our growing equipment finance businesses." said Barry Shafran, Chesswood's President and CEO.
"We have made the decision to focus our organization on our growing and more profitable business activities in the equipment finance market" added Gary Souverein, Windset and Pawnee Leasing Corporation's President. "While we have continued to manage Windset profitably, our longer term outlook on the changing fundamentals of the working capital loan market have made us uncomfortable with the risk-return profile. We appreciate the many relationships we have made since 2013 and we will continue to fund all of our partners' approved applications" said Souverein.
About Chesswood Group Limited
Chesswood operates in the financial services industry, with equipment finance businesses in both Canada and the U.S. To learn more about Chesswood, visit www.chesswoodgroup.com.
The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com and www.BlueChipLeasing.com.
This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.