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Wednesday, December 11, 2013

Advantage picks buyer, settles vehicle lease deal with Hertz, (NYSE: HTZ)

Advantage Rent A Car said it picked Canadian private equity Catalyst Capital Group Inc to purchase its assets in bankruptcy proceedings and reached a deal with Hertz Global Holdings Inc that allows Advantage to continue using a leased vehicle fleet. Advantage had to file for bankruptcy protection last month after Hertz terminated their vehicle lease agreements, saying Advantage had failed to make some payments on 24,000 vehicles.Hertz has now agreed to let Advantage to continue to use the vehicles in return for payments, Simply Wheelz LLC, which does business as Advantage, said in a court document on Tuesday.The settlement also gives Catalyst an option to buy the leased vehicles from Hertz, which will make a $2.8 million payment to Catalyst once it completes its purchase of Advantage.Hertz did not respond to requests seeking comment.

Hertz Global Holdings, Inc. (Hertz Holdings) is a holding company. Shares of HTZ fell by 0.28% or $-0.07/share to $24.78. In the past year, the shares have traded as low as $15.66 and as high as $27.75. On average, 10960900 shares of HTZ exchange hands on a given day and today's volume is recorded at 2129531.