Problems for Priszm


TORONTO — Priszm Income Fund, the majority stakeholder in some 400 Canadian quick-service restaurants under the KFC, Taco Bell and Pizza Hut brands, recently reported it is withholding the interest payment of $975,000 on its $30-million convertible debenture, which was due Dec. 31.

In a release, the company says the delay is due to ongoing negotiations with its senior debt holder and franchisor. What’s more, the company states it is not in the position to repay the senior debt facility of $65.6 million, which was due on Dec. 31, and as previously disclosed, also withheld the interest payment on this senior facility, which was due earlier in December.

The company is in active discussions with its franchisor and the senior debt lender with respect to a refinancing and restructuring of the business, however there can be no assurance on any resolution resulting from these discussions, even though all parties are working towards a satisfactory solution.


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