DALLAS, Feb. 9 /PRNewswire-FirstCall/ -- Manchester Inc. (BULLETIN BOARD: MNCS) Manchester Inc. and each of its subsidiaries (collectively "Manchester") today announced that they have filed for protection under Chapter 11 of the Federal Bankruptcy Code. Rick D. Gaines, Manchester's newly appointed President and Chief Executive Officer stated, "Manchester filed for bankruptcy protection due to an ongoing dispute with its senior secured creditor and intends to use this opportunity to resolve ongoing disputes that have adversely affected the company and its operations. Manchester is requesting and expects to receive authority from the Bankruptcy Court that will allow it to continue to operate in the ordinary course of business during its chapter 11 cases, with very limited exception.
Specifically Manchester expects the following: (1) Manchester's business divisions intend to continue to operate in the ordinary course; (2) Manchester intends to pay wages and benefits in full and on time; (3) Manchester does not intend to have any layoffs related to the bankruptcy cases; (4) Manchester expects that its current senior management team and all personnel will remain in place; (5) Manchester intends to continue to operate on a 'business as usual' basis; and (6) Manchester expects the bankruptcy to result in a stabilized and financially-stronger Manchester, one that is profitable and poised for future growth."
Rick Gaines further stated that "the purpose of this bankruptcy is simple -- to resolve ongoing disputes that have hampered Manchester's ability to conduct its operations. We have every intention of emerging from the protection of the Federal Bankruptcy Code with all Manchester's creditors paid in full and its shareholders' equity interest in Manchester preserved. During this process we will continue to conduct business in the ordinary course and pay our obligations as they become due."
About Manchester Inc.
Manchester, headquartered in Dallas, Texas, is in the Buy-Here/Pay-Here auto business. Buy-Here/Pay-Here dealerships sell and finance used cars to individuals with limited credit histories or past credit problems, generally financing sales contacts ranging from 24-48 months.
On October 4, 2006, Manchester acquired Nice Cars, Inc. and Nice Cars Capital Acceptance Corporation. Nice Cars, Inc., headquartered in Ft. Olgethorpe, Georgia, operates six automotive sales lots that focus exclusively on the Buy-Here/Pay-Here segment of the used car market.
On December 29, 2006 Manchester acquired F.S. English, Inc. (now operating as Freedom Auto Sales) and GNAC, Inc. (now operating as Freedom Auto Acceptance), headquartered in Indianapolis, Indiana. Freedom Auto Sales operates three automotive sales lots that focus exclusively on the Buy-Here/Pay-Here segment of the used car market. On July 25, 2007, Manchester acquired substantially all of the assets of Royce Motors, Inc., which now operates as a unit of Freedom Auto Sales.
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Manchester cannot provide assurances that any prospective matters described in the press release will be successfully completed or that the Company will realize the anticipated benefits of any transactions. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential from war or other hostilities in other parts of the world; availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the Company's ability to retain key management and employees; intense competition and the Company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in the Manchester's SEC filings. Manchester undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with the business of Manchester, please refer to the risks and uncertainties detailed in the Manchester's SEC filings.
