Advantage Rent A Car gets OK for $14.8 million in interim financing

By Jim Witters

Wilmington, Del., Nov. 8 - Simply Wheelz LLC, which does business as Advantage Rent A Car, received interim approval for access to $14.8 million of its $36 million of debtor-in-possession financing from The Catalyst Capital Group, Inc., according to a Nov. 8 filing with the U.S. Bankruptcy Court for the Southern District of Mississippi.

The DIP financing commitment could be increased by as much as $10 million at the sole discretion of the lender without further order from the court.

Interest will be Libor plus 800 basis points.

The facility will mature on Jan. 3.

Proceeds from the DIP loan will allow Advantage to continue to operate its businesses, satisfy working capital and operational needs and facilitate the sale of its business as a going concern.

According to court documents, the financing is contingent upon an agreement under which the lender would serve as stalking horse bidder for a sale of substantially all of the company's assets and an arrangement with the Federal Trade Commission regarding the stalking horse bid and bidding procedures.

A final hearing is scheduled for Dec. 3.

Simply Wheelz, a Ridgeland, Miss., rental car company, filed bankruptcy on Nov. 5. The Chapter 11 case number is 13-03332.

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