SelectCore (TSXV:SCG) has announced it has been served by PACE Savings & Credit Union with a Statement of Claim filed in Ontario.
As quoted in the press release:
The Claim relates to the shortfall of a secured cash pledge (“Secured Deposit”), as per the Special Account Agreement executed between the Company and All Trans Financial Services Credit Union Limited (“All Trans“), which was acquired by PACE. The Company has been disclosing this shortfall in its financial statements during the previous years.
The shortfall has been reduced on a regular basis by the different transaction and monthly fees that are usually charged to cards-as per cardholder agreements-and the Company has every intention to resolve this matter expeditiously.
Mohammad Abuleil, president of the Company, comments, “This has been a lingering situation over an extended period of time. The company is in a much better fiscal position to address the matter. It should be emphasized that this is a cash covenant scenario.”