FORT LAUDERDALE, Fla. -- ANC Rental Corp., which has been operating
under bankruptcy protection since November 2001, said it signed an
agreement to sell its Alamo Rent A Car and National Car Rental
divisions 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
non-vehicle 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.
ANC said the agreement requires the approval of the United
States Bankruptcy Court for the District of Delaware. A hearing to
approve formal bidding procedures is scheduled for June 18 before
U.S. Bankruptcy Judge Mary Walrath.
ANC said it is requesting that the court set a hearing to
approve the sale by Aug. 6.
Approval of the June 18 bidding procedures motion would create
the opportunity for other qualified buyers to submit competing bids
resulting in an auction sale of the company.
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," said ANC president Bill Plamondon,
in a statement.
A spokesman for Cerberus said the company "would not be in a
position to comment on this matter for a day or two until the dust
settles."