Private equity firm Catalyst Capital gets go ahead for Advantage Rent A Car takeover
A Mississippi bankruptcy judge has approved a deal that allows Canadian private equity firm Catalyst Capital Group Inc. to by Texas-based car rental company Advantage Rent A Car.
According to a report by Candian news daily Times Colonist, Advantage Rent A Car filed for Chapter 11 bankruptcy in November. Catalyst Capital emerged as the top bidder for the car rental company in December and a judge finalized the sale on Thursday.
Catalyst Capital will pay for the deal by forgiving a $46 million loan made earlier to Advantage Rent A Car as part of its bankruptcy proceedings, the report said.
Court documents show that Advantage Rent A Car has assets and debts both exceeding $100 million. The car rental company was formerly owned by New Jersey-based Hertz Global Holdings Inc. Hertz sold Advantage Rent A Car to meet regulatory conditions as part of its 2012 acquisition of Dollar Thrifty Automotive Group Inc., Times Colonist said.