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,"...
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