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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
December 1, 1999
CENTRAL FINANCIAL ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 95-4574983
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
Commission file number: 001-11815
5480 East Ferguson Drive
Commerce, California 90022
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code:
(323) 720-8600
Not Applicable
(Former name or former address, if changed since last report)
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Item 1. Changes in Control of Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable
Item 5. Other Events
On December 1, 1999, the Company's Board of Directors approved a
plan to separate the financial services and internet/travel components of the
Company through a sale of the financial services business of the Company. Mr.
Cypres, Chairman of the Board, and the majority shareholder of the Company,
advised the Board of Directors that he will form a management group to submit a
bid, subject to securing financing, to purchase the financial services business
of the Company. The Board of Directors created an Independent Committee for the
purposes of analyzing, reviewing and negotiating any proposals received in
connection with the proposed transactions and making recommendations to the
Board of Directors in connection therewith. Further information is contained in
the Press Release attached hereto as Exhibit 99.1.
Item 6. Resignations of Registrant's Directors
Not Applicable
Item 7. Financial Statements and Exhibits
(a) Financial Statements
Not Applicable
(b) Pro Forma Financial Information
Not Applicable
(c) Exhibits
99.1 Press Release dated December 1, 1999
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Item 8. Change in Fiscal Year
Not Applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Central Financial Acceptance Corporation
(Registrant)
Date: December 2, 1999 By /s/ Gary Cypres
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Chairman of the Board
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Exhibit Index
99.1 Press Release dated December 1, 1999
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EXHIBIT 99.1
PRESS RELEASE
CENTRAL FINANCIAL ACCEPTANCE CORPORATION ANNOUNCES
PLAN TO SEPARATE ITS FINANCIAL SERVICES AND
INTERNET/TRAVEL BUSINESSES
COMMERCE, CALIFORNIA: December 1, 1999, Central Financial Acceptance Corporation
(CFAC:OTCBB) announced today that in order to maximize shareholder value, its
Board of Directors had approved a plan to separate the financial services and
Internet/travel components of the Company through a sale of the financial
services business of the Company. Mr. Cypres, Chairman of the Board, and the
majority shareholder of the Company, advised the Board of Directors that he
"will form a management group to submit a bid, subject to securing financing, to
purchase the financial services business of the Company." Mr. Cypres further
stated that "the Board of Directors had created an Independent Committee for the
purposes of analyzing, reviewing and negotiating any proposals received in
connection with the proposed transactions and making recommendations to the
Board of Directors in connection therewith." Mr. Cypres further stated that "the
Independent Committee will engage an investment banking firm to advise it and
assist in the process of selling the Company's financial services business." Mr.
Cypres further added, "because the potential sale of the financial services
business of the Company involves a sale of a majority of the tangible assets of
the Company, it will be subject to shareholder approval." At September 30, 1999,
the net tangible assets of the financial components of the Company's business
were approximately $53 million dollars or $7.40 per share.
Mr. Cypres further added that the Company "will seek shareholder approval to
change the Company's name to Todisimo, to reflect the Company's growing presence
in the Hispanic Internet and travel business." Finally, Mr. Cypres stated that
"the Company's Internet travel site has experienced a significant increase in
the number of hits it has received as a result of increased advertising,
including business advertisements on Star Media and El Sitio, two Hispanic
portals." Mr. Cypres added that "Todisimo.com, the Company's Spanish language
e-commerce site, has been expanded and presently includes travel, books,
electronics and will shortly be adding CD's and gifts."
Central Financial Acceptance Corporation is a specialized consumer finance and
travel company that primarily serves the needs of the growing Hispanic
population in the United States.
Certain statements in this press release constitute forward-looking statements
under the Private Securities Litigation Reform Act of 1995, which involve risks
and uncertainties. The Company's actual results may differ significantly from
the results discussed in such forward-looking statements. Factors that might
cause such a difference, include, but are not limited to, whether the
Independent Committee of the Board of Directors receives a proposal to buy the
financial services business of the Company, which it finds acceptable and
whether any such transaction is consummated.
Contact: Gary Cypres, Chairman of the Board, at 323/720-8600.
