Fifth Third Provides DIP to Support Global Axcess Sale
Global Axcess, a provider of ATM services and DVD self-service kiosks, announced that it entered into an asset purchase agreement with stalking horse bidder Financial Consulting & Trading International (FCTI), a wholly owned subsidiary of Seven Bank, to acquire substantially all of the assets of the company’s ATM operating business.
To facilitate the sale, the company and its business units have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Court for the District of Nevada. The company has obtained a commitment from Fifth Third Bank for debtor-in-possession financing of approximately $1.5 million, subject to court approval.
The DVD assets will be sold under a separate process. The ATM business sale will potentially allow the Company to emerge with the strong financial backing of a new owner with substantial experience in the ATM industry.
The company intends to continue operating its business without interruption during the sale period and the company remains confident in its existing pipeline of business opportunities.
“The sale and filing are necessary next steps to complete the Company’s transformation and position the Company for the future, as we remain confident in our existing pipeline of business opportunities and the strength of our service offering,” said Kevin L. Reager, Global Axcess president. “We are grateful to our outstanding team of employees, partners and suppliers who have worked with us through this transition. We are pleased to have attracted a strong financial partner for our business, and we hope to complete the sale swiftly to make the process as seamless as possible.”
FCTI has agreed to serve as stalking horse bidder for the sale process, which allows other interested parties to come forward with competing bids. Aggregate consideration offered by FCTI for the purchase totals approximately $10 million.