The Aegis Consumer Funding Group, Inc. Announces a Change in Majority Shareholder
19 February 1999
The Aegis Consumer Funding Group, Inc. Announces a Change in Majority Shareholder
MARIETTA, Ga., Feb. 19 -- The Aegis Consumer Funding Group,
Inc. (OTC Bulletin Board: ACAR) today announced that the Company has been
informed that its majority shareholder, III Global Ltd., and affiliated III
Fund Ltd. (collectively "III"), have sold a majority shareholder interest in
the Company to Prairie Boy's Investments, Inc., a Florida corporation
("Prairie"). In aggregate, the sale consisted of the transfer from III to
Prairie of 13,135,987 shares of the 30,000,000 shares currently issued and
outstanding of Common Stock of the Company along with 12 shares of Series C
Preferred Stock of the Company. The Company was informed that the sale was
consummated pursuant to a Stock Purchase Agreement (the "Agreement") executed
on February 9, 1999.
III Finance, Ltd., an affiliate of III and the Company's largest creditor
and only current warehouse provider, has agreed in connection with this
transaction to release the Company from any claim over and above the
preexisting receivables-related collateral under the various debt agreements
with III Finance, Ltd. The Company has been informed that in the event that
Prairie defaults in its obligation to III, however, the waiver of recourse
will be extinguished. Prairie has represented to III, in the Agreement, that
it will obtain adequate financing to permit the Company to continue operations
at its current levels for at least twelve (12) months. III has represented to
Prairie that III Finance, Ltd., contemplates funding the Company's acquisition
of automobile finance receivables for no more than thirty (30) days from the
execution of the Agreement. The Company has received from III Finance, Ltd.,
a notice of termination of its warehouse line, effective March 12, 1999.
By letters to the Company dated February 18, 1999, Robert H. Fasulo and
Warren B. Mosler, both affiliates of III, informed the Company of their
immediate resignation from the Board of Directors. There is currently one
member remaining on the Board, Matthew B. Burns the Company's Chief Executive
Officer and President. The Board had previously passed a resolution allowing
for a single Director to constitute a quorum, in the event that the Board
consists of a single Director. No plans have been formalized concerning a
corporate management transition.
Based in Georgia, The Aegis Consumer Funding Group, Inc., is a holding
company whose principal operating subsidiaries are engaged in the consumer
finance business primarily serving the sub-prime credit market for automobile
loans. The Company maintains offices in Georgia, California, and Kansas. The
Company provides new and used car financing in over thirty states through
licensed automobile dealers.
This press release contains forward-looking statements regarding future
events and future performance of the Company that involves risks and
uncertainties that could materially affect actual results. Investors should
refer to documents that the Company files from time to time with the
Securities and Exchange Commission for a description of certain factors that
could cause actual results to vary from current expectations and
forward-looking statements contained in this press release. Such filings
include, without limitation, the Company's Form 10-K, Form 10-Q and Form 8-K
reports.