New Delaware Chapter 11 Filing – Rent-A-Wreck of America, Inc.
Rent-A-Wreck of America, Inc., and its affiliate Bundy American, LLC have filed a chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-11592). The privately-held Laurel, Maryland-based companies are in the business of selling and administering franchisees for the operation of vehicle rental, leasing, car sharing and rent-to-purchase, rent-to-own, lease-to-own and used vehicle sales under the “Rent-A-Wreck” and “The Smart Alternative” names. As set forth in the first day declaration, the debtors attribute their filings in large measure to the cash expended in 10 years of litigation with the founder and former owner of the companies. The debtors have also filed a motion to obtain debtor-in-possession financing. The cases have been assigned to the Honorable Laurie Selber Silverstein. The docket is available through Kurtzman Carson Consultants.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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