CenCor announces Century Acceptance Corp. agrees to sell consumer finance business to Fidelity Acceptance Corp

Business Wire, May 22, 1995

KANSAS CITY, Mo.--(BUSINESS WIRE)--May 22, 1995--CenCor Inc. announced Monday that Century Acceptance Corp., its sole operating subsidiary, has agreed to sell its consumer finance business to Fidelity Acceptance Corp., a subsidiary of the Bank of Boston Corp.

Under the terms of the agreement, substantially all of Century's assets will be sold for total projected gross proceeds of approximately $131 million. This amount is subject to adjustment depending on the book value of Century's assets, consisting primarily of its loan portfolio, on the consummation of the transaction, which is expected to occur by mid-July.

Consummation of the Purchase Agreement is subject to a number of contingencies, including receipt of all necessary governmental approvals. Accordingly, there can be no assurance that the transaction will be consummated.

Assuming the transaction had taken place on March 31, 1995 and CenCor and Century liquidated at that time, CenCor would have had a liquidiation value of approximately $6 million dollars ($3.30 per share), after giving effect to the conversion of 11.5 million in convertible notes to equity.

It is unlikely that any such liquidation will occur prior to July 1998. CenCor's liquidation value at the time of liquidation may be significantly reduced as a result of claims arising from indemnification obligations to the buyer or as the result of other factors, such as unexpected tax liabilities.

Century's branch office employees will be offered employment opportunities with Fidelity Acceptance.

Bank of Boston Corp., which has its securities listed on the New York and Boston stock exchanges, is a New England-based global bank with assets of $43.5 billion. Fidelity Acceptance Corp. is a 66-year old consumer finance company with 139 offices in 26 states.

CONTACT: CenCor Inc., Kansas City

Jack Brozman, 816/474-8002