FORT LAUDERDALE, Fla. -- ANC Rental Corp., which has been operating under bankruptcy protection since November 2001, agreed to sell its Alamo Rent A Car and National Car Rental units to a private investment firm, New York-based Cerberus Capital Management, for $230 million in cash.

Under the agreement, Cerberus would assume $60 million in nonvehicle debt and provide $150 million of working capital, ANC said.

In addition, the buyer would assume more than $2 billion of ANC's debt that is secured by rental cars.

The U.S. Bankruptcy Court for the District of Delaware on June 18 approved the bidding and possible sale, creating the opportunity for other qualified buyers to submit competing bids.

The court ruled that bids for the two car rental units must be submitted no later than July 25 and that an auction would be held Aug. 4 if other bidders step forward.

ANC reported revenue of approximately $2.4 billion in 2002. The two car divisions have more than 3,200 locations in 83 countries and have a fleet of more than 375,000 automobiles.

"We have two great brands in Alamo and National, and this sale will only make them stronger," ANC president Bill Plamondon said in a statement.

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