A PYMNTS Company

US: Hertz divesture files for bankruptcy, threatens FTC’s market plan

By  |  November 6, 2013

The rental car company divested by Hertz Global Holdings as a settlement to complete its merger with Dollar Thrifty Automotive Group has reportedly filed for bankruptcy following a missed payment for vehicle leases.

Reports say Advantage Rent-a-Car, spun off by Hertz, failed to meet a payment deadline following its acquisition of 24,000 vehicles from Hertz as part of an agreement. The news was announced in a statement made by Franchise Services of North America earlier this week.

The divesture of Advantage was part of an agreement with the US Federal Trade Commission for the rental car market to remain competitive following Hertz’s buyout of rival Dollar Thrifty. Advantage’s bankruptcy filing, however, threatens FTC’s plan to ensure that competitiveness, reports say.

Regulators cleared the $2.3 billion buyout last July.

Full content: Bloomberg

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.