Priszm Income Fund withholds Dec. 31 payment on convertible debentures

By Caroline Salls

Pittsburgh, Jan. 3 - Priszm Income Fund is withholding the C$975,000 interest payment due Dec. 31 on its C$30 million of convertible debentures because of ongoing refinancing and restructuring negotiations with its senior debtholder and franchisor, according to a news release.

The company said it is not in the position to repay its C$65.6 million senior debt facility, which was also due on Dec. 31. Priszm also withheld an interest payment due on the facility earlier in December.

Toronto-based Priszm Income Fund holds a 60% interest in Priszm LP, which owns and operates more than 400 quick-service restaurants in seven provinces across Canada including KFC, Taco Bell and Pizza Hut.

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