Dec 11 Advantage Rent A Car said it picked
Canadian private equity Catalyst Capital Group Inc to buy its
assets in bankruptcy proceedings and reached a deal with Hertz
Global Holdings Inc that allows Advantage to continue
using a leased vehicle fleet.
Advantage had to file for bankruptcy protection last month
after Hertz terminated their vehicle lease agreements, saying
Advantage had failed to make some payments on 24,000 vehicles.
Hertz has now agreed to let Advantage to continue to use the
vehicles in return for payments, Simply Wheelz LLC, which does
business as Advantage, said in a court document on Tuesday.
The settlement also gives Catalyst an option to buy the
leased vehicles from Hertz, which will make a $2.8 million
payment to Catalyst once it completes its purchase of Advantage.
Hertz did not respond to requests seeking comment.
Hertz sold Advantage to Franchise Services of North America
(FSNA) last year to satisfy antitrust authorities,
following its purchase of Dollar Thrifty, which competes with
Advantage in low-cost car rentals.
Under that sale, FSNA was required to book any losses from
the sale of the leased vehicles.
FSNA contested Hertz's decision to terminate the lease in
November and said the book value of the cars passed to them at
the time of the sale was too high.
A final hearing on the sale of Simply Wheelz to Catalyst is
scheduled for Dec. 17.
The case is In re: Simply Wheelz LLC, d/b/a Advantage
Rent-A-Car, Case No. 13-0332-ee, U.S. Bankruptcy Court, Southern
District Of Mississippi.