In addition to the maturity date extension of all of the outstanding debt, the agreements provide the company with an additional facility of up to $2.9 million. This is in addition to the $3.7 million already drawn by the company in respect of the Jan. 19 agreement. As part of the agreements, Priszm is required to work with the senior debt lender on an asset sale process to explore the potential sale of locations not subject to the previously announced sale of the Ontario and B.C. outlets.
The company also reported it has reached an agreement with its franchisor, Yum! Restaurants International, to extend the franchise terms of the 70 outlets, which expired on Jan. 15 to Feb. 28, 2011.
