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NextPoint strikes restructuring deal to sell assets


NextPoint Financial
NACQF,
+11.36%

has reached a restructuring deal to sell assets and substantially reduce its debt.

The Canadian financial-services company said the agreement struck with a set of lenders calls for them to buy NextPoint’s assets for up to $281 million, consisting of a credit bid of at least $100 million in secured debt, cash to be paid at close and obligations to be assumed.

NextPoint will continue normal day-to-day operations, serving customers at its Liberty Tax and Community Tax businesses, and has secured a commitment for $25 million in debtor-in-possession financing from the lenders, which should provide enough liquidity to fulfill its ongoing obligations to franchisees and customers.

The company said it has also tapped its interim chief executive, Scott Terrell, to remain in the role permanently. Terrell took over the position in May following the resignation of Ted DeMarino, who came into the interim role following the departure of Brent Turner in March.

A multi-month internal investigation found in mid-May that Turner directed or permitted the company to do business with other entities in which he had certain financial interests without disclosing it to the NextPoint board.



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