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

Five Business Model Trends for 2017

As new forms of mobility take flight, the borders with traditional car rental are starting to erode.

Are Commercial Drone Deliveries Eminent in the U.S.?

Amazon just delivered its first package by drone in England. Will U.S. delivery fleets be able to take advantage soon?

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.

Job Finder: Access Top Talent. Fill Key Positions.