#advantage rent a car
Months after its spinoff from Hertz Global Holdings Inc. Advantage Rent a Car is asking federal regulators to approve its sale to a new owner.
The Federal Trade Commission on Tuesday began seeking public comment on Catalyst Capital Group Inc.’s bid to acquire Advantage, the fourth-largest independent U.S. car-rental chain, out of Chapter 11.
A bankruptcy judge approved the deal last week, although a rival bidder is appealing, and the FTC must still give its blessing.
Regulators there previously ordered Hertz to shed Advantage in connection with Hertz’s $2.3 billion of Dollar Thrifty Automotive Group Inc. a direct competitor to Advantage. However, Advantage’s spinoff soured as the company found itself embroiled in disputes over vehicles it leased from Hertz. As a result, Advantage sought bankruptcy protection in November and quickly sought to sell itself to Catalyst, subject to a court-overseen auction process.
In its request for regulatory approval of the Catalyst sale, Advantage cites Catalyst’s status as one of Canada’s biggest private equity firms and its “proven track record of acquiring distressed businesses and successfully turning them around.”
Advantage also disclosed what it says is Catalyst’s “compelling” plan to make sure Advantage can compete in the highly concentrated U.S. car-rental market. That plan includes more than $100 million in new capital, a new fleet of rental vehicles and focusing on airport rentals in such markets as Baltimore, New York City and Newark.
You can read Advantage’s application for regulatory approval here .
The FTC said it will accept public comments on the sale through Jan. 22, after which it will determine whether to approve the deal.