In accordance with bidding procedures approved by the U.S. Bankruptcy Court for the Southern District of Mississippi, Avis Budget Car Rental and The Hertz Corp. have been selected as successful bidders for 22 U.S. airport concession agreements used in the Advantage Rent A Car business — not included in the Catalyst Asset Sale, according to Franchise Services of North America Inc.(FSNA).
Pursuant to binding term sheets and approved by the court, Avis will assume 12 U.S. airport concession agreements (together with related leases and executory contracts) for consideration of approximately $6 million in cash, plus the assumption of certain liabilities of the Advantage business associated with such concessions, says FSNA.
According to FSNA, Hertz will assume 10 U.S. airport concession agreements (together with related leases and executory contracts) for consideration of approximately $200,000 in cash — plus the assumption of certain liabilities of the Advantage business associated with such concessions by Hertz and the continued right of Advantage and Catalyst to use Hertz's vehicle fleet for April, May and June 2014, which the parties agreed has a value of approximately $3.5 million.
The Avis Asset Sale and the Hertz Asset Sale are expected to be completed in the second quarter of 2014, but FSNA cautions there are procedural matters with third parties that will need to be completed.
Catalyst Capital Group has confirmed that it will assume 41 U.S. airport concession agreements used in the Advantage Rent A Car business from Simply Wheelz and FSNA.
Catalyst was selected as the prevailing purchaser in an auction for the assets connected with FSNA’s wholly-owned subsidiary, Simply Wheelz LLC, which operates as Advantage Rent A Car.
The Catalyst Asset Sale is currently scheduled to close on or around April 30, says FSNA.
The Catalyst Asset Sale, the Avis Asset Sale and the Hertz Asset Sale together constitute a sale of substantially all of Simply Wheelz’s assets, says FSNA.