SMK Speedy International Inc.

SMK Speedy International Inc.

May 19, 2006 11:56 ET

SMK Speedy International Inc.: T-Notes

TORONTO, ONTARIO--(CCNMatthews - May 19, 2006) - On May 15, 2006, SMK Speedy International Inc. ("Speedy") announced that it had closed the previously announced transaction for the sale and leaseback of its real estate. As a result of the transaction, the $19 million principal amount owing under its Senior Subordinated Notes was repaid in full, together with accrued interest, partial deferred interest plus transaction fees.

As a consequence of the above transaction, all of Speedy's rights and obligations under the T-Notes have been assigned to Maple Trust Company and Speedy has been released of all of its rights and obligations under the T-Notes. Speedy wishes to advise the holders of T-Notes, that the T- Notes will no longer be RRSP eligible. Noteholders who hold T-Notes in their RRSP should seek tax guidance prior to May 31, 2006. After May 31, 2006, penalties may apply. To assist holders of T-Notes in the valuation of their T-Notes, Computershare Trust Company will make available and will mail to holders of T-Notes a copy of the consolidated financial report as at December 31, 2005 of Tuffy Associates Corp. and its subsidiary ("Tuffy"), the entity that provides the payments that, in turn, comprise payments that are due to holders of T-Notes under the T-Notes. Speedy can also confirm that, to date, Speedy has received all interest payments due from Tuffy under the Tuffy Notes as well as a pre-payment of principal that was not due until July 8, 2006 in the amount of US$200,000.

SMK Speedy is a leading automobile service specialist with 81 company operated and 39 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