CenCor announces Century Acceptance Corp. agrees to sell consumer finance business to Fidelity Acceptance Corp.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--May 22, 1995--CenCor Inc. announced Monday that Century Acceptance Corp., its sole operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , has agreed to sell its consumer finance business to Fidelity Acceptance Corp., a subsidiary of the Bank of Boston Corp. Under the terms of the agreement, substantially all of Century's assets will be sold for total projected gross proceeds of approximately $131 million. This amount is subject to adjustment depending on the book value of Century's assets, consisting primarily of its loan portfolio, on the consummation of the transaction, which is expected to occur by mid-July. Consummation of the Purchase Agreement is subject to a number of contingencies, including receipt of all necessary governmental approvals. Accordingly, there can be no assurance that the transaction will be consummated. Assuming the transaction had taken place on March 31, 1995 and CenCor and Century liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. at that time, CenCor would have had a liquidiation value of approximately $6 million dollars ($3.30 per share), after giving effect to the conversion of 11.5 million in convertible notes to equity. It is unlikely that any such liquidation will occur prior to July 1998. CenCor's liquidation value Liquidation value Net amount that could be realized by selling the assets of a firm after paying the debt. at the time of liquidation may be significantly reduced as a result of claims arising from indemnification obligations to the buyer or as the result of other factors, such as unexpected tax liabilities. Century's branch office employees will be offered employment opportunities with Fidelity Acceptance. Bank of Boston Corp., which has its securities listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Boston stock exchanges The Boston Stock Exchange (BSE) is a regional stock exchange located in Boston, Massachusetts. The third-oldest stock exchange in the United States, it was founded in 1834. On October 2nd, 2007 Nasdaq agreed to acquire BSE for $61 million. , is a New England-based global bank with assets of $43.5 billion. Fidelity Acceptance Corp. is a 66-year old consumer finance company with 139 offices in 26 states. CONTACT: CenCor Inc., Kansas City Jack Brozman, 816/474-8002 |
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