Crown Capital Provides Update on Solo Liquor Holdings Limited

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Crown Capital Provides Update on Solo Liquor Holdings Limited

Canada NewsWire

CALGARY, May 28, 2019 /CNW/ - Crown Capital Partners Inc. ("Crown" or the "Corporation") (TSX: CRWN), a capital partner to entrepreneurs and growth businesses,  previously disclosed that Solo Liquor Holdings Limited and Solo Liquor Stores Ltd. (collectively "Solo") was placed in receivership on May 1, 2019 by ATB Financial, which provided credit facilities to Solo. Crown Capital Partner Funding, LP ("Crown Partners Fund") has a $15 million loan outstanding to Solo. Crown is the manager of the fund and has an effective interest of approximately 37% in Crown Partners Fund.  In its financial results for the three months ended March 31, 2019, Crown recorded a provision for the full amount of its loan to Solo.

Crown has been working closely with ATB and the Court-appointed receiver, FTI Consulting Canada Inc., in the receivership process. As part of its efforts to recover funds, Crown Partners Fund recently advanced $13.6 million to acquire a portion of the outstanding senior debt of Solo from ATB. Crown management currently expects that the realization on the security underlying the loans will result in the recovery of the recent advance as well as an estimated $3.5 million to $4.5 million on the original investment by Crown Partners Fund.

"We continue to work diligently to maximize the recovery for our investors, and this is an important step in that process," said Chris Johnson.

About Crown Capital Partners (TSX: CRWN)
Founded in 2000, Crown is a leading specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds. Crown provides customized solutions in the form of loans, royalties, and other structures with minimal or no ownership dilution. In addition to deploying capital as a principal investor, Crown develops, manages and co-invests in alternative investment funds, including Crown Partners Fund and Crown Capital Power Fund.

FORWARD-LOOKING STATEMENTS

This news release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Crown's periodic filings with Canadian securities regulators. See Crown's most recent annual information form for a detailed discussion of the risk factors affecting Crown. In addition, Crown's dividend policy will be reviewed from time to time in the context of the Corporation's earnings, financial requirements for its operations, and other relevant factors and the declaration of a dividend will always be at the discretion of the board of directors of the Corporation. Crown undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

SOURCE Crown Capital Partners Inc.

View original content: http://www.newswire.ca/en/releases/archive/May2019/28/c2221.html

Copyright CNW Group 2019

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