Business
Allen-Vanguard executes binding agreement with affiliate of Versa Capital Management to go private
Allen-Vanguard executes binding agreement with affiliate of Versa Capital Management to go private
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\nSep. 12, 2009 (Canada NewsWire Group) -- OTTAWA, Sept. 12 /CNW Telbec/ -- Allen-Vanguard Corporation (TSX: VRS) (\"Allen-Vanguard\" or the \"Company\") of Ottawa, Canada, Versa Capital Management, Inc., a Philadelphia-based private equity investment firm, and the Company's senior lenders (the \"Lenders\") today announced the execution of an agreement pursuant to which Allen-Vanguard will become a 100%-owned affiliate of investment partnerships managed by Versa Capital Management, Inc. (collectively, \"Versa\").Versa will provide both equity and debt capital to Allen-Vanguard. This will permit the restructuring and reduction of Allen-Vanguard's existing senior secured credit facilities and their replacement with a multi-year credit agreement and afford the Company significant flexibility to pursue its business plan. Certain of the Lenders will make available a new revolving credit facility and documentary credit facility to Allen-Vanguard.The transaction agreement provides that the Company's obligations to trade creditors shall be unaffected and will continue to be paid or satisfied in the ordinary course. Similarly obligations to employees also will be unaffected. All shares, options, restricted stock, warrants and other securities in Allen-Vanguard and any related rights will be cancelled on closing of the transaction, with no consideration paid to holders. Closing of this transaction is subject to closing conditions customary for a transaction of this nature, including any required regulatory or court approvals.\"This announcement marks the end of an exacting, year-long process of recapitalizing the Company in order to execute our business plan going forward,\" said David E. Luxton, President and CEO of Allen-Vanguard. \"This process took place during a period of extremely difficult credit and equity markets, and a concurrent decline in the Company's financial performance. While we received several overtures during this past year, Versa was the only party able to conclude definitive terms. Under Versa's ownership, Allen-Vanguard will continue to conduct its business in the ordinary course, with management and the new board focused on global business opportunities. This follows the progress that we have made over the last year to right-size the Company, to expand and diversify the Company's proprietary products and serv...