RIDGELAND — Franchise Services of North America Inc.’s wholly-owned subsidiary, Simply Wheelz LLC, which does business as Advantage Rent A Car, has completed the sale of 41 U.S. airport concession agreements used in the Advantage business to The Catalyst Capital Group Inc. (on behalf of one or more funds managed by it).
Catalyst 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.
Pursuant to the terms of the asset purchase agreement approved by the Court, the consideration for the Catalyst Asset Sale was a credit bid of $46 million against the debtor-in-possession credit facility provided by Catalyst to Simply Wheelz, plus the assumption by Catalyst of certain liabilities of the Advantage business associated with such concession agreements. Catalyst also assumed certain leases, executory contracts, personal property and intellectual property used in connection with the Advantage business.
Simply Wheelz filed for bankruptcy protection under the United States Bankruptcy Code on Nov. 5, 2013.