WILMINGTON, Del. -- A bankruptcy court ruling Nov. 8 cleared the way for a unit of Cendant Corp. to purchase nearly all the assets of Budget Group. The deal carries a price tag of $506.8 million.
The ruling was made by Judge Mary F. Walrath, the same bankruptcy judge responsible for some of the key rulings involving ANC Corp. in its Chapter 11 reorganization. The Cendant unit established to make the Budget Group purchase is Cherokee Acquisition Corp.
The proposed deal calls for Cherokee to pay $110 million in cash. Cherokee will also assume some of Budget's debt, including $2.7 billion tied to fleet financing and $72 million owed to Nissan. Other liabilities include $7.8 million in insurance costs and $5 million in severance pay.