Update on Simply Wheelz Bankruptcy Proceedings

Franchise Services of North America Inc. (FSNA) has provided an update on the previously-announced bankruptcy proceedings of the company's wholly-owned subsidiary Simply Wheelz LLC — which does business as Advantage Rent A Car — in the United States Bankruptcy Court for the Southern District of Mississippi.

On Nov. 7, the Court entered interim orders authorizing Simply Wheelz to make payments to certain critical vendors, assume executory contracts with certain online travel agents, honor prepaid reservations from its customers, pay employee and independent contractor wages and associated taxes and benefits and make certain airport concession payments — in each case in accordance with the terms and conditions of the respective order.

On Nov. 8, the Court entered an interim order approving a $20 million line of credit facility for Simply Wheelz, says FSNA. Per bankruptcy court documents issued yesterday, Catalyst Capital Group has been named as Advantage's debtor-in-possession financier.

Simply Wheelz is scheduled to appear before the Court on Dec. 3 to request final approval of a $36 million line of credit and other matters approved to date, according to FSNA.

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

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>