SMK Speedy to pay C$5 million to noteholders after bank releases collateral

New York, Dec. 1 - SMK Speedy International Inc. said it will pay $5 million to holders of its senior secured subordinated notes in early December after the bank released the funds, which were being held as collateral.

SMK Speedy also said that holders of a majority of the notes approved an amendment to the covenants and repayment terms. The changes will give the Toronto-based automotive service company more cash flow for operations and flexibility in pursuing its business strategy. They also specify minimum note repayment milestones.

SMK Speedy said it has engaged a company to market the sale and leaseback of substantially all of its properties to commence earlier payment of the notes than required and, if successful, the company anticipates a transaction in the first quarter of 2006.

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