Priszm Sale Put on Hold


TORONTO — Priszm Income Fund, which last week was granted a court extension of its Companies’s Creditors Arrangement Act protection to June 30, reported yesterday, May 2, that the sale of its Ontario and B.C. restaurants to Soul Restaurants Canada Inc. has been delayed.

Fund units are scheduled to be delisted from the Toronto Stock Exchange Friday, May 6. Trading has been halted since the company announced it was granted court protection from creditors.

Priszm Income Fund holds a 60-per-cent interest in Priszm Limited Partnership, which owns more than 400 quick-service restaurants.

Soul Restaurants had agreed to pay $46.6-million for 231 KFC, Taco Bell and Pizza Hut restaurants in Ontario and B.C. Priszm hired investment banking firm Canaccord Genuity to help restructure its debt, but according to reports, the inability to ink a deal was likely due to challenging credit markets and disagreement on business issues.


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