A Mississippi bankruptcy judge has approved a deal that allows Canadian private equity firm The Catalyst Capital Group to buy Advantage Rent-A-Car.
The Ridgeland, Miss.-based rental car company filed for Chapter 11 bankruptcy in November. Catalyst emerged as a top bidder for Advantage in December and a judge finalized the sale Thursday.
The private equity firm will pay for the deal by forgiving a $46 million loan made earlier to Advantage as part of its bankruptcy proceedings.
Court documents show Advantage has assets and debts both exceeding $100 million.
Advantage was formerly owned by Hertz, which sold the business to meet regulatory conditions as part of its 2012 acquisition of Dollar Thrifty Automotive Group Inc.