Advantage Rent a Car, which is going on the auction block next week, on Tuesday received the bankruptcy court's final blessing for a $36 million bankruptcy loan from its would-be buyer, Catalyst Capital Group Inc., the Wall Street Journal reported today. Court papers show that Bankruptcy Judge Edward Ellington on Tuesday granted final approval to a loan that is meant to see the car-rental company through its chapter 11 case and sale. While the official loan amount is $36 million, it can be increased to $46 million if Advantage and Catalyst so choose. The loan puts Catalyst, a Canadian private-equity firm, in a prime position to acquire Advantage Rent a Car through a process overseen by the bankruptcy court. Catalyst will lead off the bidding at Monday's auction with its offer to forgive the full amount of the loan in exchange for the assets instead of paying cash.
