Catalyst Wins Bid for Advantage

Catalyst Capital Group Inc.’s bid for bankrupt Advantage Rent A Car was approved at auction yesterday over the only other bid, from Sixt SE, according to court documents.

Catalyst, a Canadian private-equity firm, supplied Advantage with a $36 million bankruptcy (DIP (“debor-in-possession”) loan on Dec. 3. Catalyst’s offer would forgive the full amount of the loan in exchange for the assets of Advantage. Exact terms of the deal had not yet been filed by the court as of this writing.

According to court documents, Catalyst revised its bid and agreed to waive the previously declared “Events of Default” under its DIP loan. In so doing, Catalyst waived its right to demand full repayment of its loan to Advantage sooner than it was originally due.

Sixt elected not to submit another bid in response to the revised Catalyst bid.

Advantage will ask the U.S. Bankruptcy Court in Jackson, Miss., to approve the sale on Dec. 17. The sale is also subject to the approval of federal regulators.

Advantage operates 72 car rental locations in 33 states. The company was declared bankrupt on Nov. 5 by its owner, Franchise Services of North America Inc. Advantage was spun off from Hertz to satisfy antitrust stipulations with the Federal Trade Commission.

For an analysis of what's next for Advantage, read this Auto Focus blog.

Comments

  1. Darryl [ December 10, 2013 @ 01:38PM ]

    Business Development

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.