Advantage Rent A Car financing increased to $46 million; more possible

By Caroline Salls

Pittsburgh, Jan. 30 - Simply Wheelz LLC, which does business as Advantage Rent A Car, requested court approval of an amendment that would increase its debtor-in-possession financing commitment to $46 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Mississippi.

Also under the amendment, the commitment amount can be increased by up to an additional $20 million upon written agreement of the company and DIP lender.

In connection with the amendment, the company said the DIP lender has waived events of default resulting solely from Advantage's failure to satisfy a weekly receipts test and monthly receipts test for the time period ended Nov. 30.

Advantage said the lender will also have the option to fund any or all accrued liabilities in an approved budget upon the closing of the sale of the company's assets.

The DIP facility is scheduled to mature on Feb. 28, and the asset sale is required to close by the same date.

As previously reported, Advantage Rent A Car received final approval of the original $36 million of DIP financing from the Catalyst Capital Group, Inc. in December.

Under that final order, the 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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.