Monaco Finance Announces New Chief Executive Officer Evaluating Strategic Alternatives
17 February 1999
Monaco Finance Announces New Chief Executive Officer Evaluating Strategic Alternatives
DENVER--Feb. 17, 1999--Monaco Finance, Inc. (Nasdaq OTC-BB: MONFA), a leading sub-prime automobile lender, reported that on February 11, 1999, at a Special Meeting of the Board of Directors of Monaco Finance, Inc. (the "Company"), the Board of Directors accepted the resignation of John Sloan as a Director of the Company as well as the resignation of Joseph Cutrona, as Chief Executive Officer. Mr. Cutrona will remain as a Director of the Company.The Company's Board of Directors also nominated and elected James T. Moran, as Chief Executive Officer and filled the Board vacancy created by Mr. Sloan's resignation by nominating and electing Mr. Moran as a Director of the Company. Mr. Moran's past experience includes being Senior Managing Director of PriceWaterhouse Coopers, LLP including twenty-five years of finance, banking and business advisory experience.
The Company has been advised by its major shareholder, Senior Lender and sole source of working capital, Pacific USA Holdings, Corp. that it no longer intends to continue funding the Company's monthly capital requirements caused by the Company's negative cash flow. The Company is taking measures to reduce this need and pursuing other sources to fund its working capital requirements. The Company's Board also appointed a special committee consisting of three directors including Mr. Moran to review the Company's strategic alternatives including certain business opportunities, which, if consummated, could be beneficial to the Company. However, there is no assurance that any or all of such opportunities will be consummated.
Monaco Finance, which is based in Denver and operates in 22 states, is one of the nation's most experienced secondary auto finance companies specializing in acquiring, from automobile dealerships, retail installment contracts of purchasers of new and late model automobiles. Monaco has developed sophisticated credit evaluation systems and state-of-the-art loan monitoring programs to provide a solid platform for future growth.
The forward looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward looking statements are reasonable, any of the assumptions could be inaccurate and therefore, there can be no assurance that the forward looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.