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EXHIBIT 99.1
PRESS RELEASE
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PRESS RELEASE
CENTRAL FINANCIAL ACCEPTANCE CORPORATION ANNOUNCES FILING AN INFORMATION
STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR ITS PLAN OF COMPLETE
DISSOLUTION, LIQUIDATION AND DISTRIBUTION.
COMMERCE, CALIFORNIA: October 2, 2000 - Central Financial Acceptance
Corporation (OTCBB:"CFAC") announced today that its Board of Directors and
stockholders owing a majority of the outstanding common stock have approved a
Plan of Complete Dissolution, Liquidation and Distribution (the "Plan"), under
which the operations of CFAC have been separated into two subsidiaries: Hispanic
Express, Inc. and Banner Central Finance Company, whose outstanding common
shares will be distributed to each CFAC shareholder on a yet to be determined
liquidation date.
In connection therewith, CFAC has submitted to the Securities and
Exchange Commission (the "SEC") an Information Statement covering pertinent
business and financial information required to be filed prior to CFAC effecting
its dissolution and liquidation, and making the distribution of the common stock
of these two subsidiaries to its stockholders. Upon receiving appropriate
clearance from the SEC, CFAC will determine the liquidation date under the Plan.
Mr. Cypres, Chairman of the Board of CFAC, stated that "Hispanic
Express, Inc. has been formed to operate CFAC's travel and small loan
businesses, while Banner Central Finance Company has been formed to operate
CFAC's mortgage origination business and to purchase consumer receivables which
are generated from the sale of consumer products sold by an affiliated company."
Mr. Cypres further stated that "the Board of Directors decided to adopt the Plan
as part of CFAC's continuing objective of enhancing long term shareholder value
and that the Board of Directors has the ability to abandon, defer or modify the
Plan any time prior to the Plan's consummation, should other considerations,
including the possible sale of CFAC arise." Mr. Cypres also added that "third
quarter operating results would be adversely impacted by the continuing bus
strike in Los Angeles."
CFAC is a specialized multi-unit travel service company with an
expanding Internet travel business that primarily serves the travel needs of the
growing low-income Hispanic population in California.
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
economic conditions, credit quality, fluctuations in interest rates, our
relationship with our airlines, capital availability, technology, competition in
the geographic and business areas in
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which the Company conducts its operations and other factors discussed in the
Company's Annual Report on Form 10-K.
Contact: Gary Cypres, Chairman (323) 720-8600
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