Court Approves Cendant's Purchase of Budget

WILMINGTON, Del. -- A bankruptcy court ruling Nov. 8 cleared the way for a unit of Cendant Corp. to purchase nearly all the assets of Budget Group. The deal carries a price tag of $506.8 million.

The ruling was made by Judge Mary F. Walrath, the same bankruptcy judge responsible for some of the key rulings involving ANC Corp. in its Chapter 11 reorganization. The Cendant unit established to make the Budget Group purchase is Cherokee Acquisition Corp.

The proposed deal calls for Cherokee to pay $110 million in cash. Cherokee will also assume some of Budget's debt, including $2.7 billion tied to fleet financing and $72 million owed to Nissan. Other liabilities include $7.8 million in insurance costs and $5 million in severance pay.

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

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.

>