Fenix Parts Provides Update on 10-K Filing, Nasdaq Listing and Forbearance Agreement
WESTCHESTER, Ill., May 26, 2017 (GLOBE NEWSWIRE) -- Fenix Parts, Inc. (Nasdaq:FENX), a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive products, today announced that it has requested from The Nasdaq Stock Market (“Nasdaq”) an extension to file its Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”), and for its Quarterly Report on Form 10-Q for the period ended March 31, 2017 (the “March 31, 2017 Form 10-Q”). The Company previously announced that a Nasdaq Hearings Panel (the “Panel”) issued a decision granting the Company’s request for the continued listing of its common stock on Nasdaq subject to, among other things, the Company filing with the SEC its 2016 Form 10-K by May 26, 2017. In addition, the Panel’s decision requires the Company to file its March 31, 2017 Form 10-Q on or before June 30, 2017. While the extension request is pending, the Company expects that its common stock will continue to trade on Nasdaq uninterrupted, pending the Panel’s response. While the Company is hopeful that the Panel will grant an extension, no assurances can be provided that the Panel will elect to do so.
In addition, on March 27, 2017, the Company and its subsidiaries entered into a Forbearance Agreement to the Credit Facility (the "Forbearance Agreement") with BMO Harris Bank N.A. (“BMO”) and its Canadian affiliate, Bank of Montreal. Under the Forbearance Agreement, and subject to its conditions, the lenders have agreed, during the forbearance period ending May 26, 2017, to refrain from exercising their rights and remedies under the Credit Facility with respect to the Company’s non-compliance with applicable financial and other covenants and any further non-compliance with such covenants. The Company is currently working with BMO on continuing the Forbearance Agreement in light of the delayed 2016 Form 10-K filing.
The delay in the Company’s filing of its 2016 Form 10-K is attributable in large part to a delayed start in the year-end financial reporting and related audit field work, following the Company's submission of its quarterly reports on Forms 10-Q for the periods ended September 30, 2016 and June 30, 2016. The delayed start was due to the July 2016 change in auditors, the complexity of accounting for the Company’s multiple business combinations and the additional audit procedures that were required, particularly in the areas of purchase accounting and inventory. The Company continues to be actively engaged with its independent auditors to expedite, to the extent possible, the completion of its annual audit and quarterly review so that the 2016 Form 10-K and March 31, 2017 Form 10-Q may be filed with the Securities and Exchange Commission as soon as possible.
About Fenix Parts
Fenix Parts is a leading recycler and reseller of original equipment manufacturer (“OEM”) automotive products. The company’s primary business is auto recycling, which is the recovery and resale of OEM parts, components and systems reclaimed from damaged, totaled or low value vehicles. Customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. Fenix provides its customers with high-quality recycled OEM products, extensive inventory and product availability, responsive customer service and fast delivery.
Fenix was founded in 2014 to create a network that offers sales, fulfillment and distribution in key regional markets in the United States and Canada. The Fenix companies have been in business an average of more than 25 years and currently operate from 16 locations throughout the Eastern U.S. and in Ontario, Canada.
This press release contains forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by use of words such as "may, will, should, anticipates, believes, expects, plans, future, intends, could, estimate, predict, projects, targeting, potential or contingent," the negative of these terms or other similar expressions. Our actual results could differ materially from those discussed or implied herein.
We caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. You should evaluate all forward-looking statements made in this press release in the context of the risks and uncertainties disclosed in our SEC filings. These filings are available online at www.sec.gov, www.fenixparts.com or upon request from Fenix Parts.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences we anticipate or affect us or our operations in the way we expect. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.
At Fenix Parts: Scott Pettit Chief Financial Officer email@example.com Investor and Media Inquiries: Chris Kettmann 773-497-7575 firstname.lastname@example.orgSource: Fenix Parts, Inc.
Released May 26, 2017