FORT LAUDERDALE, Fla.-- ANC Rental Corp. announced it will use up to $1 billion of financing capacity by ARG Funding Corp., a wholly owned subsidiary, to purchase new vehicles. A U.S. bankruptcy court on Feb. 6 cleared the way for the car purchases when it approved an agreement between ANC and MBIA Insurance Corp. MBIA insures a portion of the debt issued by ARG Funding Corporation, ANC's domestic fleet financing subsidiary.

"This was a critical step in our restructuring efforts," said Larry Ramaekers, chief operating officer and president of ANC Rental Corp. "It keeps us competitive and allows us to buy up to 50,000 vehicles now when travel is picking up. We are very appreciative of the continued confidence of MBIA and our creditors committee."

The company has begun placing orders for delivery in early March as it begins to ramp up for the spring and summer season when car rental volume peaks. ANC has reached an agreement with several major automobile manufacturers, including GM, Chrysler, Mitsubishi, Toyota, among others, to supply the company with vehicles.