Canadian payday loan provider Cash Store Financial Services Inc said on Monday it will seek protection from creditors as it faces liquidity problems resulting from the suspension of its right to offer loans in the province of Ontario. In February, the Edmonton, Alberta-based company said it was voluntarily delisting its shares from the New York Stock Exchange as its share price had plummeted and it could not meet the exchange's listing requirements.Last month, Cash Store said it was in talks with some of its creditors to address near-term liquidity issues that arose after its right to offer loans in Ontario, Canada's most populous province, was suspended.The company's share price has fallen nearly 98 percent over the last two years and its Toronto-listed shares closed Friday at 14 Canadian cents.Cash Store said on Monday it plans to bring an application in the Ontario Superior Court of Justice to seek protection from creditors under the Canadian Companies' Creditors Arrangement Act (CCAA).
The Cash Store Financial Services Inc. under its Cash Store Financial, Instaloans and The Title Store banners, provides consumers with alternative financial products and services, serving everyday people for whom traditional banking may be inconvenient or unavailable. Shares of CSF remained unchanged at $0.14. In the past year, the shares have traded as low as $0.09 and as high as $3.45. On average, 78098 shares of CSF.TO exchange hands on a given day and today's volume is recorded at 257047.
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