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STATE COLLEGE, Pa. -- The letter of intent, filed by Uni-Marts Inc. to merge operations with HFL Corp. has been terminated by HFL. This action is a result of the HFL's concerns with its ability to obtain certain consents to the transaction from the company's lenders in a timely fashion and on comparable terms.
As a result, Uni-Mart is now free to enter into a business combination with any other person or entity without the payment of a "break-up" fee to HFL.
"We are disappointed that HFL and Uni-Marts will not be able to consummate the merger," said Stephen Krumholz, chairman of the Special Committee of the Uni-Marts board. "The Special Committee will, however, continue to pursue other strategic alternatives, and the company will in the meantime continue its divestiture plan for under-performing locations."
HFL is a privately-held corporation controlled by several officers and directors of the company. Uni-Marts operates 294 convenience stores and Choice Cigarette Discount Outlets in Pennsylvania, New York, Delaware, Maryland and Virginia with self-service gasoline sold at 238 of these locations.