ANC Rental Corp. Signs Sale Agreement

FORT LAUDERDALE, Fla. -- ANC Rental Corp., parent company of Alamo Rent A Car and National Car Rental, has signed an agreement to sell nearly all its assets to a private investment group. The sale, valued at $290 million, culminates ANC's restructuring efforts after filing for Chapter 11 bankruptcy protection in November 2001.

Under terms of the deal, Cerberus Capital Management will pay $230 million in cash, assume $60 million in non-vehicle debt, and provide a $150 million committed working capital line. Additionally, Cerberus Capital Management will assume more than $2 billion in vehicle debt as well as other liabilities. ANC has more than $290 million in secured non-vehicle debt and administrative claims.

The sale requires the approval of the United States Bankruptcy Court for the District of Delaware. A hearing to address bidding procedures is set for June 18.

ANC has requested that the bankruptcy court set a hearing to approve the sale on August 6. Upon approval of the proposed bidding procedures, other qualified buyers will have the opportunity to submit competing bids, resulting in an auction sale of the company. But if another bidder beats out Cerberus, the investment group will qualify for a termination fee of about $12.5 million and up to $1.5 million to offset various costs.

"We have two great brands in Alamo and National, and this sale will only make them stronger," said Bill Plamondon, president and CEO of ANC Rental Corp.

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.

>