Catalyst Acquires Advantage Assets in Insolvency Proceedings
Franchise Services of North America provided the following update on the previously announced proposed sale of certain assets used in connection with the business of the company’s wholly-owned subsidiary, Simply Wheelz, which does business as Advantage Rent-A-Car.
The Catalyst Capital Group, on behalf of one or more managed funds, was selected as the prevailing purchaser in an auction of the Advantage assets conducted in accordance with bidding procedures approved by the United States Bankruptcy Court for the Southern District of Mississippi in the Simply Wheelz insolvency proceedings. Catalyst had previously been approved by the court as a secured lender in the proceedings.
Catalyst has confirmed that it will assume 41 U.S. airport concession agreements used in the Advantage business from Simply Wheelz and the company pursuant to an asset purchase agreement entered into among Catalyst, Advantage and the company and approved by the Court.
Catalyst will also assume certain leases, executory contracts, personal property and intellectual property used in connection with the Advantage business.
Pursuant to the terms of the asset purchase agreement approved by the court, the consideration for the Catalyst asset sale will be a credit bid of US$46 million against the debtor-in-possession credit facility provided by Catalyst to Simply Wheelz, plus the assumption of certain liabilities of the Advantage business by Catalyst asociated with such concession agreements. The Catalyst Asset Sale is currently scheduled to close on or around April 30, 2014.
The company further announces that, in accordance with bidding procedures approved by the court, Avis Budget Car Rental and Hertz have been selected as successful bidders for 22 United States airport concession agreements used in the Advantage business and not included in the Catalyst asset sale.