Priszm selling some restaurants in the Maritimes for $2.5 million

TORONTO – Insolvent Priszm Income Fund (TSX:QSR.UN) announced Tuesday that it plans to sell 38 of its restaurants in New Brunswick and Nova Scotia for about $2.5 million.

The sale to FMI Atlantic Inc., an entity controlled by a current Canadian Yum! Restaurants International franchisee, is subject to court approval under the Companies’ Creditors Arrangement Act.

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Priszm Income Fund holds approximately a 60 per cent interest in Priszm Limited Partnership, which owns and operates more than 190 quick service restaurants in six provinces across Canada under the KFC, Taco Bell and Pizza Hut brands.

Priszm, which is restructuring under court protection from creditors, has already sold 204 of its restaurants including 63 properties owned by the trust.

Aside from customary closing conditions, the proposed transaction is also subject to adequate landlord consents and approval by YUM! Restaurants International, Priszm’s senior debt holder.