RIDGELAND — Franchise Services of North America Inc.’s wholly owned subsidiary, Simply Wheelz LLC, which does business as Advantage Rent A Car, has selected The Catalyst Group Inc. (on behalf of one or more funds managed by it) as the prevailing bidder in the auction of certain of the Advantage assets conducted in accordance with bidding procedures approved by the United States Bankruptcy Court for the Southern District of Mississippi as part of the Simply Wheelz insolvency proceedings.
Sixt SE was designated as the back-up bidder under the bid procedures in the event that Simply Wheelz is not able to complete the sale transaction with Catalyst within the specified period of time.
Catalyst agreed, in connection with its bid, that it would continue to lend to Simply Wheelz on the existing terms of its credit facility, subject to a revised budget, which budget significantly increases the borrowing availability of Simply Wheels under the terms of its credit facility. In addition, there is the possible addition of fleet financing at the option of the Lender.
A final hearing on the sale motion filed by Simply Wheelz in the bankruptcy case is scheduled for Dec. 17, at which time Simply Wheelz has requested the Bankruptcy Court to declare that Catalyst is the prevailing purchaser of the assets to be sold.
Simply Wheelz hopes to complete its sale to Catalyst in the first quarter of 2014. However, the company cautions that there are a number of procedural matters and arrangements with third parties that will need to be completed before such sale is likely to be consummated.
Simply Wheelz’ filed for U.S. federal bankruptcy protection on Nov. 6.