Car Rental Direct to be Liquidated

LOS ANGELES -- MAII Holdings announced plans for Chapter 7 liquidation of its subsidiary Car Rental Direct.

The announcement followed Car Rental Direct's revelation earlier this month that it had defaulted on a loan agreement with Ford Motor Credit Co. After the default, Ford received a court order permitting the company to seize vehicles in Car Rental Direct's fleet.

Back in November 2002, Ford Motor Credit Co. filed suit against MAII Holdings and its subsidiary after Car Rental Direct defaulted on a loan agreement. Ford sought damages of $13 million, plus interest and attorney fees. But in January, Ford and MAII agreed to restructure the loan. Since then, however, Car Rental Direct has missed payments required by the revised loan agreement with Ford.

MAII Holdings also announced yesterday that its board of directors has fired Chris Tyler from his post as chairman, CEO and president. John J. McDonald Jr. has been appointed chairman of the board. Tom Montgomery has agreed to serve as interim CEO and president.

Last year, Car Rental Direct had 18 locations in southern California.

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

Safety Tech: Crash Avoidance or Sensory Overload?

As advanced safety technologies become even more pervasive on mainstream vehicles, are we creating “stupid drivers?"

Own the Fleet, Own the Future

In the dialogue surrounding new transportation paradigms, fleets have been off the public radar until recently. Here’s what’s going on, and a way for you to participate in the conversation.

Car Rental Rates Up, Fleet Sales Down — Correlation?

Car rental companies’ recent fleet discipline is needed now more than ever.

Job Finder: Access Top Talent. Fill Key Positions.

>