Thursday November 4, 8:37 pm Eastern Time
Company Press Release
CPS Reaches Agreements to Receive Cash From Its Securitized Portfolio
IRVINE, Calif.--(BUSINESS WIRE)--Nov. 4, 1999--Consumer Portfolio Services, Inc. (Nasdaq: CPSS - news) announced today that it has reached a series of agreements that will allow the company again to receive releases of excess cash from its securitized portfolio of automotive receivables. Receiving such releases is an important component of the company's plan to meet its capital and liquidity requirements. From June 1998 through September 1999, any excess cash generated from collections on the portfolio was used to build reserves, and was not available to CPS.
''These agreements are a major step forward for CPS, and improve our short term liquidity,'' said Charles E. Bradley, Jr., President and Chief Executive Officer.
''We are also pleased to announce that we have repaid all indebtedness owed under our line of credit with General Electric Capital Corporation,'' said Bradley, ''and that we are in compliance with an agreed schedule that will repay all of our indebtedness to Bank of America by December of this year.''
There can be no assurance that releases of cash to CPS will continue on a regular monthly basis, and the amounts that may be released will vary from month to month. The statement that the agreements reached will allow the Company to receive such releases is a forward-looking statement. Events that could cause such releases not to continue include, but are not limited to, the possibility that the performance of the underlying portfolio of sub-prime automotive receivables could deteriorate, which could reduce or even eliminate cash releases. |
