FORT LAUDERDALE, Fla.-- ANC Rental Corp., the parent company of Alamo Rent A Car and National Car Rental, filed Tuesday for reorganization under Chapter 11 of the U. S. bankruptcy code.
The filing was made in Wilmington, Del. The company listed assets of $6.5 billion and debts of $5.95 billion.
ANC Rental said it plans to use existing cash, revenue generated from normal business activities, and the relief benefits provided by Chapter 11 to finance operations through this period. ANC's filing includes its U.S. operating subsidiaries, Alamo, National and Alamo Local Market, and several other domestic entities. It does not include its international or Canadian operations, or its independent National franchisees.
ANC said all existing and future reservations will be honored as usual. Post-petition obligations to vendors will be paid promptly in the normal course of business. Employees will continue to receive full salary, health and welfare benefits.
ANC Rental Corp. Chairman and CEO Michael Egan said: "The drastic decline in travel after Sept. 11 has taken a tremendous toll on our business, and our current capital and expense structure cannot absorb the shortfall. As a result, we are seeking the protection and relief provided by Chapter 11 to allow us to continue serving customers while we stabilize the business. This filing is a positive and proactive step for ANC. It allows us to restructure our balance sheet, improve our operations and position ourselves for future profitability while continuing to serve customers with our traditional high level of service and quality."
ANC Rental Corporation, headquartered in Fort Lauderdale, is one of the world's largest car rental companies. In 2000, annual revenue totaled about $3.5 billion. ANC has more than 3,000 locations in 69 countries and has about 19,000 employees worldwide.
Originally posted on Auto Rental News