SMK Speedy International Inc.

SMK Speedy International Inc.

September 14, 2005 16:00 ET

Speedy Announces Deferral of Certain Debt Payments and Review of Financing Alternatives

TORONTO, ONTARIO--(CCNMatthews - Sept. 14, 2005) - SMK Speedy International Inc. ("Speedy") today announced that the Company has received the consent from a majority of holders of its Senior Secured Subordinated Notes to defer a principal repayment of $737,000 to the note holders that was due on September 16, 2005. The Company together with a majority of Note Holders passed a majority resolution in accordance with the terms of the Note Indenture governing the terms of Senior Secured Subordinated Notes consenting to the deferral of the repayment to the earlier of November 30, 2005 or the date of a meeting of the Note Holders called to approve amendments to the Note Indenture to reflect the new financial arrangement. In addition, the Company received consent from its bank to the deferral of a principal payment of approximately $2 million due under its senior loan facilities. The Company has reduced its original senior bank loan from $21 million to approximately $2 million dollars since January 2004. These deferrals will provide Speedy with an opportunity to review other or improved financing alternatives which may include the sale of real estate which, if successful, will result in early pay down of the Senior Secured Subordinate Notes.

Speedy intends to continue to pay all interest as it comes due on the Senior Secured Notes with the next interest payment being due on September 30, 2005.

SMK Speedy International Inc is a leading automobile service specialist with 93 company operated and 28 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