LISLE, Ill. -- Budget Group Inc. announced it has launched a recapitalization initiative to restore its financial health. The company said it is currently in discussions with potential investors regarding an infusion of new capital through a private equity investment.
"Recapitalization of the balance sheet, combined with our continuing cost cutting and asset control efforts, will put Budget on track for future financial success," said Sandy Miller, chairman and CEO of Budget Group.
Budget has retained Lazard Freres & Co. LLC as its financial adviser regarding recapitalization alternatives. Budget has also begun discussions with holders of its senior notes concerning a balance sheet restructuring. As part of this initiative, Budget did not make the $18.5 million senior notes interest payment due on April 1, 2002. The company has made all principal and interest payments relating to its vehicle fleet financing.
In addition, Budget announced that it has filed an extension request with the SEC relating to its annual report on Form 10-K for the year ended December 31, 2001. Budget expects to file the annual report on or about April 15, 2002.
In a released statement, Budget said it would "continue to operate on a business-as-usual basis with regard to its employees, customers and vendors."