ANC Rental Corp., the parent company of Alamo Rent A Car and National Car Rental, today filed for Chapter 11 bankruptcy protection, citing the drastic reduction in travel since the Sept. 11 terrorist attacks.
The reorganization "will be seamless to customers," according to an ANC statement, and all existing and future reservations with both brands still will be honored. International operations and independent national franchise holders also are not affected by the bankruptcy filing.
"We are seeking the protection and relief provided by Chapter 11 to allow us to continue serving customers while we stabilize the business," said ANC chairman and CEO Michael Egan. "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."
ANC faced a Thursday deadline to pay lenders $70 million in principal, which had been deferred since September. The company already had cut its fleet and its workforce, hired new senior management and merged the salesforces of Alamo and National.
The Fort Lauderdale, Fla.-based company is the fourth-largest car rental firm in the industry, after Enterprise, Hertz and Avis.