TORONTO, July 22,
2024 /CNW/ - Chesswood Group Limited
("Chesswood") (TSX: CHW) has determined that it will have to
prepare and file restated financial statements and management's
discussion and analysis ("MD&A") for the three months
ended March 31, 2024 as a result of
its previously disclosed errors in calculating its borrowing base
for purposes of its senior secured revolving credit facility, and
the resulting breach of the credit facility, suspension of
borrowing capacity and suspension of originations by Pawnee Leasing
and Rifco.
Management and members of Chesswood's Audit & Risk Committee
are working with Chesswood's auditors to determine the ultimate
restatements to be made, but it is expected that the restatements
will include (i) the write down of certain (and perhaps all)
intangibles, including goodwill, (ii) the write down of long lived
assets and certain deferred tax assets and liabilities, (iii)
correcting disclosure related to compliance with, and available
borrowings under, the credit facility and (iv) revised going
concern and controls and procedures disclosure.
Chesswood's management is also engaged in review of the prior
year borrowing base calculations and prior year financial
statements and MD&A to determine whether restatement is
required.
ABOUT CHESSWOOD GROUP LIMITED
Chesswood Group Limited is a Toronto,
Canada based holding company whose subsidiaries engage in
the business of specialty finance (including equipment finance
throughout North America and
vehicle finance and legal sector finance in Canada), as well as the origination and
management of private credit alternatives for North American
investors. Our shares trade on the Toronto Stock Exchange (under
the symbol CHW).
For information on Chesswood Group
Limited and its operating subsidiaries:
www.ChesswoodGroup.com
www.PawneeLeasing.com
www.TandemFinance.com
www.VaultPay.ca
www.VaultCredit.com
www.Rifco.net
www.WaypointInvestmentPartners.com
www.EasyLegal.ca
FORWARD-LOOKING INFORMATION
This press release contains forward-looking statements within
the meaning of applicable securities laws. Forward-looking
statements in this press release may include, but are not limited
to, statements relating to the Committee's strategic review process
including the ongoing pursuit of selling one or more of the
Company's business units or the Company itself or any resulting
winddown and evaluation of value enhancement opportunities, the
Company's pursuit of arrangements to remedy, or in furtherance of
an extension to the temporary waiver of, the Company's breach under
the Credit Facility, if any, and other statements that are not
material facts. Forward-looking statements are typically identified
by words such as "believe", "expect", "anticipate", "project",
"intend", "plan", "will", "may", "estimate" and other similar
expressions or the negative of these words or variations of them or
similar expressions.
Although the Company believes that the forward-looking
statements in this press release are based on information and
assumptions that are current, reasonable and complete, these
statements are by their nature subject to a number of factors,
risks and uncertainties, both general and specific in nature, that
could cause actual results to differ materially form those
expressed or implied by these forward-looking statements,
including, without limitation, the possibility that a further
extension to the waiver in relation to the Credit Facility covenant
breach may not be obtained and the availability, timing or
completion of any other capital raise or sale transaction for all
or part of the Company's business. The Company cautions that the
foregoing assumptions and factors are not exhaustive and other
factors could also adversely affect its results. For more
information on the risks, uncertainties and assumptions that could
cause the Company's actual results to differ from current
expectations, please refer to the Company's publicly filed
documents, including the Company's annual information form and
management's discussion and analysis of financial condition and
performance, which are available electronically at
www.sedarplus.ca.
Unless otherwise noted or the context otherwise indicates, the
forward-looking statements contained in this press release describe
the Company's expectations as at the date of this press release
and, accordingly are subject to change after such date. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to update or revise any forward-looking
statements contained in this press release, whether as a result of
new information, future events or otherwise. Readers are cautioned
not to place undue reliance on these forward-looking
statements.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY
AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
SOURCE Chesswood Group Limited