Rent-A-Wreck, Citing Litigation Costs, Files For Ch. 11

Law360, Wilmington (July 25, 2017, 7:30 PM EDT) -- Secondhand car rental agency Rent-A-Wreck of America Inc. sought court protection late Monday in Delaware, saying lengthy and costly litigation with the company's founder had strained its liquidity and forced it into restructuring as operational losses mounted.

Rent-A-Wreck director and general counsel Gregg Steinbarth said in a first-day declaration that the company began experiencing serious issues following its 2006 acquisition by JJF Management Services Inc. that included costly and disruptive lawsuits brought by the company's founder, David Schwartz.

"The costs of defending the Schwartz litigation, which lasted almost a decade, have consumed funds that could have been reinvested in the business,"...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Attached Documents

Related Sections

Law Firms

Government Agencies

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!