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.