AutoNation reaches agreement - Big Deals - ANC Rental Corp. agreement - Brief Article

South Florida CEO, May, 2003

* Fort Lauderdale-based AutoNation announced it has signed an agreement with ANC Rental Corporation and the unsecured creditors' committee appointed in ANC's bankruptcy. The agreement resolves potential claims relating to the bankruptcy and to the spin-off of ANC (a rental car company) by AutoNation in 2000.

Terms of the agreement state that AutoNation will continue to guarantee certain bonds issued by ANC until December 2006, capping AutoNation's obligation at $29.6 million. Upon ANC's successful exit from bankruptcy, AutoNation will guarantee an additional $10.5 million of ANC bonds until December 2006. AutoNation is the country's largest automotive retailer, and was accused of spinning-off ANC without sufficient capital for ongoing operations.