Last week ANC reached agreement with its lenders to defer a $70 million payment due on October 1 and to suspend certain financial covenants. The company has also appointed William Plamondon as chief restructuring officer, US corporate parlance for an executive tasked with turning around a business.
He will tackle the company's cash flow and liquidity needs that have been seriously damaged by the dramatic reduction in travel following the September 11 terrorist attacks in the US. The company's share price slipped from a 52 week high of $7 to $0.45, but at the time of going to press had risen to $0.52.
But in the UK, the ANC brands of National Car Rental, Alamo and Guy Salmon are trading solidly, insisted John Leigh, senior vice president and general manager, pan-Europe.
'We are separately funded and all our finance and asset finance is done locally in Europe. But as a consequence of the issues they have in the United States, and by mutual agreement, we are making our fire walls stronger so this will not even be an issue in future.'