SMK Speedy International Inc.

SMK Speedy International Inc.

April 03, 2006 12:57 ET

SMK Speedy International Inc. Announces Real Estate Transaction to Close in May and Repayment of Notes

TORONTO, ONTARIO--(CCNMatthews - April 3, 2006) - SMK Speedy International Inc. ("Speedy") previously announced in January that it entered into an agreement to sell and leaseback real estate in a transaction that was subject to due diligence and certain conditions. Speedy today announced that all material conditions in respect of the real estate transaction have been met and that the transaction is expected to close by mid May.

In addition, Speedy announced today that it has received the approval from a majority of the holders of the Senior Subordinated Notes of Speedy approving certain amendments to the rights of the noteholders in order to facilitate the completion of the real estate sale transaction and the use of the proceeds to repay the aggregate $19 million outstanding principal and not less than $1 million of the deferred interest payable under the Notes. This represents an interest payment reduction of approximately $1,500,000. The repayment of principal and reduced interest under the Notes will be made when the sale transaction closes. Whether there will be any increase beyond $1,000,000 in the aggregate amount of deferred interest to be paid to noteholders will be determined and announced on or prior to the closing date but is not expected to vary materially from the amount announced today.

SMK Speedy is a leading automobile service specialist with 82 company operated and 37 franchise stores under contracts with SMK Speedy International Inc. or 984781 Alberta Ltd. a subsidiary of 578098 Alberta Ltd.

Contact Information

  • SMK Speedy International Inc.
    Ms. Mary Jane Allen
    Chief Financial officer
    (416) 960-7896