On Monday, a bankruptcy court dismissed the bankruptcy of Franchise Services of North America Inc. (FSNA), the parent company of the U-Save car rental brand. U-Save and its subsidiaries were not included in the bankruptcy.
Judge Edward Ellington of the United States Bankruptcy Court, Southern District of Mississippi, ruled that the bankruptcy was “filed without proper corporate authority.” The court found that FSNA failed to prove that Boketo, a subsidiary of Macquarie Capital (USA), FSNA’s largest shareholder, consented to the bankruptcy.
FSNA had filed for Chapter 11 bankruptcy on June 26 based on liquidity issues associated with expenses incurred in litigation with Macquarie Capital.
FSNA declined to comment on the bankruptcy dismissal.