================================================================= BUDGET GROUP BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) July 29, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- BUDGET GROUP BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtor's cases. New issues are prepared by Frauline Sinson-Abangan and Peter A. Chapman, Editors. Subscription rate is US$45 per issue. Any re-mailing of BUDGET GROUP BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO BUDGET GROUP BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF BUDGET GROUP [00002] CONSOLIDATED BALANCE SHEET AT MARCH 31, 2002 [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00004] BUDGET GROUP CHAPTER 11 DATABASE [00005] LIST OF THE DEBTORS' 50-LARGEST UNSECURED CREDITORS [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES [00007] BUDGET RENT A CAR (CANADA) NOT PART OF CHAPTER 11 FILINGS [00008] RYDER SYSTEM, INC., NOT PART OF CHAPTER 11 FILINGS KEY DATE CALENDAR ----------------- 07/29/02 Voluntary Petition Date 08/18/02 Deadline to provide Utilities with adequate assurance 08/28/02 Deadline for filing Schedules of Assets and Liabilities 08/28/02 Deadline for filing Statement of Financial Affairs 08/28/02 Deadline for filing Lists of Leases and Contracts 09/27/02 Deadline to make decisions about lease dispositions 10/27/02 Deadline to remove actions pursuant to F.R.B.P. 9027 11/26/02 Expiration of Debtor's Exclusive Plan Proposal Period 01/25/03 Expiration of Debtor's Exclusive Solicitation Period 07/28/04 Deadline for Debtor's Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO BUDGET GROUP BANKRUPTCY NEWS ----------------------------------------------------------------- BUDGET GROUP BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of BUDGET GROUP BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving BUDGET GROUP BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990, starting with Federated Department Stores. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) BUDGET GROUP BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtor's cases. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of BUDGET GROUP BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF BUDGET GROUP ----------------------------------------------------------------- Budget Group, Inc. 125 Basin St., Suite 210 Daytona Beach, Florida 32114 Telephone (386) 238-7035 Fax (386) 238-7461 http://www.budget.com Budget Group -- operating under the Budget Rent a Car and Ryder names -- is the world's third largest car and truck rental company. At December 31, 2001, the Company's business consists of: No. of Nameplate Outlets Type of Operation Annual Revenues --------- ------- ----------------- --------------- Budget Rent a Car 580 Corporate-owned $1,300,000,000 Budget Rent a Car 430 Franchised 367,700,000 Budget Truck Rental 400 Corporate-owned } Budget Truck Rental 220 Franchised } Ryder TRS 2,575 Dealer Operated } 647,200,000 Ryder TRS 55 Corporate-owned } scattered across the 50 United States. Additional outlets are located in Canada, Mexico, Europe, the Caribbean, Latin America, Asia, the Pacific Rim, Africa and the Middle East. The Company rents cars, trucks and passenger vans at on-airport and off-airport locations to leisure and business travelers. The Company serves customers' truck rental needs in the consumer and light commercial truck rental markets. Budget is the only vehicle rental system in the U.S. that serves leisure and business travelers as well as local and insurance replacement customers. Ford Motor Company is Budget's largest supplier of vehicles -- 64% of Budget's near-190,000 fleet consists of Ford vehicles. Budget is also obligated to purchase 80,000 new Ford vehicles in each model year. The Company employs just over 11,000 workers. Currently, the Company is in the process of integrating their two truck rental operations' fleet management, maintenance, field operations and information technology systems. The Company anticipates that integration will be completed in 2002. Additionally, the Company is in the process of re-branding all white Budget and yellow Ryder TRS trucks with news blue Budget trucks. The target date for completing this transition to blue Budget-branded trucks is December 31, 2004. ----------------------------------------------------------------- [00002] CONSOLIDATED BALANCE SHEET AT MARCH 31, 2002 ----------------------------------------------------------------- BUDGET GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS At March 31, 2002 (Unaudited) ASSETS Cash and cash equivalents $54,182,000 Restricted cash 249,645,000 Trade and vehicle receivables, net 185,456,000 Revenue earning vehicles, net 2,709,954,000 Property and equipment, net 125,361,000 Prepaid expenses and other assets 162,026,000 Intangibles, net 304,771,000 Goodwill 462,943,000 -------------- Total assets $4,254,338,000 ============== LIABILITIES AND STOCKHOLDERS' DEFICIT LIABILITIES: Notes payable $3,347,179,000 Accounts payable, accrued & other liabilities 894,320,000 Net liabilities of discontinued operations 6,981,000 -------------- Total liabilities 4,248,480,000 Company Obligated Mandatorily Redeemable Securities of Subsidiary 292,135,000 -------------- STOCKHOLDERS' DEFICIT: Common stock 374,000 Additional paid-in capital 598,323,000 Foreign currency translation adjustment (7,152,000) Accumulated deficit (876,051,000) Treasury stock (1,771,000) -------------- Total stockholders' deficit (286,277,000) -------------- Total liabilities and stockholders' deficit $4,254,338,000 ============== **** In its chapter 11 petition, Budget Group, Inc., discloses: **** **** $4,047,207,133 in total assets and **** **** $4,333,611,997 in total liabilities **** **** as of May 31, 2002, including all debtor and non-debtor **** affiliates, and excluding off balance sheet obligations. ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- LISLE, Illinois -- July 29, 2002 -- As the next step in its previously announced recapitalization initiative, Budget Group, Inc. (OTC Bulletin Board: BDGPA) today announced that it and certain of its domestic subsidiaries have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 filing will allow Budget to accelerate its plan to reduce its non-vehicle debt and to enable the Company to receive new capital investment while maintaining normal operations. In cooperation with its existing lenders and bondholders, the Company is continuing to pursue a solution to its capital structure issues and expects to make an announcement in this regard in the near future. Normal Operations Everywhere Budget Conducts Business Customer Reservations to be Honored The Company believes that the Chapter 11 process will have no impact on Budget's day-to-day business operations or its ability to provide service to its customers. All customer reservations will be honored and rental services will continue as usual. Budget's domestic and international franchisees are not involved in the Chapter 11 filing. Commitments Secured for $750 Million Vehicle Financing and up to $100 Million DIP Financing Budget has secured a commitment for $750 million of vehicle financing to maintain and grow its fleet of vehicles. In addition, the Company has received a commitment for up to $100 million of debtor-in-possession ("DIP") financing that will both provide credit enhancement for its fleet financing and working capital to support its domestic day-to-day operations. In connection with the DIP financing, Budget's existing bank group has agreed to continue to provide letters of credit to the Company during the Chapter 11 process to support its fleet financing. The DIP financing is subject to approval by the Bankruptcy Court, and other customary conditions. The Company expects that the DIP financing, available cash on hand and cash flow from operations will be sufficient to meet normal business obligations during the Chapter 11 process. Sandy Miller, Chairman and Chief Executive Officer of Budget Group, Inc., said, "Despite the success of our efforts to increase productivity and rationalize costs, the impact of September 11th and the continued recession in the travel sector has left Budget Group with a level of non-vehicle debt greater than our operations can reasonably support. We believe that Chapter 11 will accelerate our plan to reduce our non-vehicle debt and will pave the way for new capital investment in the company. Combined with a continued focus on improving our performance, reducing our non-vehicle debt through the Chapter 11 process and finalizing a solution to our capital structure issues are the right strategic steps to strengthen Budget's market leadership and future growth prospects." ----------------------------------------------------------------- [00004] BUDGET GROUP CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor Entities Filing Separate Chapter 11 Petitions: Case No. Debtor Entity -------- ------------- 02-12152 Budget Group, Inc. 02-12153 Auto Rental Systems, Inc. 02-12154 BGI Airport Parking, Inc. 02-12155 BGI Shared Services, Inc. 02-12156 BGI Shared Services, LLC 02-12157 BRAC Credit Corporation 02-12158 Budget Car Sales, Inc. 02-12159 Budget Fleet Finance Corporation 02-12160 Budget Rent a Car Asia-Pacific, Inc. 02-12161 Budget Rent a Car Caribe Corporation 02-12162 Budget Rent a Car Corporation 02-12163 Budget Rent-A-Car International, Inc. 02-12164 Budget Rent A Car of Japan, Inc. 02-12165 Budget Rent a Car of St. Louis, Inc. 02-12166 Budget Rent-A-Car of the Midwest, Inc. 02-12167 Budget Rent-A-Car Systems, Inc. 02-12168 Budget Sales Corporation 02-12169 Budget Storage Corporation 02-12170 BVM, Inc. 02-12171 Carson Chrysler Plymouth Dodge Jeep Eagle, Inc. 02-12172 Control Risk Corporation 02-12173 Dayton Auto Lease Company, Inc. 02-12174 Directors Row Management Company, LLC 02-12175 IN Motors VI, LLC 02-12176 Mastering the Move Realty, Inc.) 02-12177 Mosiant Car Sales, Inc. 02-12178 NYRAC Inc. 02-12179 Paul West Ford, Inc. 02-12180 Philips Jacobs Insurance Agency, Inc. 02-12181 Premier Car Rental LLC 02-12182 Reservation Services, Inc. 02-12183 Ryder Move Management, Inc. 02-12184 Ryder Relocation Services, Inc. 02-12185 Ryder TRS, Inc. 02-12186 TCS Properties, LLC 02-12187 Team Car Sales of Charlotte, Inc. 02-12188 Team Car Sales of Dayton, Inc. 02-12189 Team Car Sales of Philadelphia, Inc. 02-12190 Team Car Sales of Richmond, Inc. 02-12191 Team Car Sales of San Diego, Inc. 02-12192 Team Car Sales of Southern California, Inc. 02-12193 Team Fleet Services Corporation 02-12194 Team Holdings Corp. 02-12195 Team Realty Services, Inc. 02-12196 The Move Shop, Inc. 02-12197 Transportation and Storage Associates 02-12198 ValCar Rental Car Sales, Inc. 02-12199 Vehicle Rental Access Company, LLC 02-12200 Warren Wooten Ford, Inc. Petition Date: July 29, 2002 U.S. Bankruptcy Court: United States Bankruptcy Court District of Delaware 824 Market Street, Fifth Floor Wilmington, Delaware 19801 Telephone (302) 252-2900 Bankruptcy Judge: The Honorable Mary F. Walrath Debtors' Counsel: Lawrence J. Nyhan, Esq. James F. Conlan, Esq. Matthew A. Clemente, Esq. William A. Evanoff, Esq. Dennis M. Twomey, Esq. SIDLEY AUSTIN BROWN & WOOD Bank One Plaza 10 South Dearborn Street, 55th Floor Chicago, IL 60603 Telephone (312) 853-7000 Fax (312) 853-7036 - and - Robert S. Brady, Esq. Edward J. Kosmowski, Esq. Edmon L. Morton, Esq. Joseph A. Malfitano, Esq. Matthew B. Lunn, Esq. Young, Conaway, Stargatt & Taylor, LLP The Brandywine Building 1000 West Street, 17th Floor P.O. Box 391 Wilmington, DE 19899-0391 Telephone (302) 571-6600 Fax (302) 571-1253 U.S. Trustee: United States Trustee for Region III 844 King Street, Suite 2313 Lockbox 35 Wilmington, Delaware 19801-3519 Telephone (302) 573-6491 Fax (302) 573-6497 ----------------------------------------------------------------- [00005] LIST OF THE DEBTORS' 50-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Creditor Nature of Claim Claim Amount -------- --------------- ------------ Wells Fargo Bank Minnesota, N.A. 9.125% Senior $429,768,221 (as Indenture Trustee) Notes due Corporate Trust Department April 1, 2006 Sixth St and Marquette Acs. Minneapolis, MN 55497 Attn: Craig Litsey Telephone (612) 667-4160 Fax (612) 667-9825 Wilmington Trust Company 9.25% $323,117,018 (as Indenture Trustee) Remarketable Term 1100 N. Market Street Income Deferrable Wilmington, DE 19890 Equity Securities Attn: Steven Cimalore Telephone (302) 636-6058 Fax (302) 636-4143 JP Morgan Chase 6.85% Convertible $47,200,563 (as Indenture Trustee) Subordinated 450 W. 33rd Street, 15th Floor Notes due New York, NY 10001 April 29, 2007 Attn: Frank Grippo Telephone (212) 946-3358 Fax (212) 946-8430 Bear Stearns Securities Corp. 9.125% Notes $128,646,000 One Metrotech Center North 4th Floor Brooklyn, NY 11201-3862 Attn: Vincent Marzella Telephone (347) 643-2303 Fax (347) 642-4625 JP Morgan Chase Bank 9.125% Notes $62,110,000 14201 Dallas Parkway Dallas, TX 75254 Attn: Paula J. Dabner Telephone (469) 477-0081 Fax (469) 477-2183 The Bank of New York 9.125% Notes $30,390,000 925 Patterson Plank Rd. Secaucus, NJ 07094 Attn: Cecile Lamarco Telephone (201) 319-3066 Fax (201) 319-3073 Credit Suisse First Boston 9.125% Notes $27,656,000 1 Madison Avenue 2nd Floor -- Reorganization Dept. New York, NY 10010 Attn: Mr. Jeff Ski Telephone (212) 538-7710 Fax (212) 538-9955 Wachovia Bank, N.A. 9.215% Notes $25,550,000 301 S. College St. Charlotte, NC 28288-0630 Attn: Rebecca Henderson, Esq. Telephone (704) 374-6611 Fax (704) 383-0649 SSB Trust Custody 9.125% Notes $24,000,000 2 Heritage Drive P.O. Box 12749 North Quincy, MA 11201 Attn: Ed Chaney Telephone (617) 644-3424 Fax (617) 664-8559 Morgan Stanley & Co., Inc. 9.125% Notes $20,000,000 One Pierrepoint Plaza, 7th Floor Brooklyn, NY 11201 Attn: Victor Reich Telephone (718) 754-4019 Fax (718) 754-4291 State Street Bank and Trust Co. 9.125% Notes $18,400,000 Global Corporate Action Unit JAB 5NW 1776 Heritage Dr. North Quincy, MA 02171 Attn: Joseph J. Callahan Telephone (617) 985-6453 Fax (617) 537-5004 JP Morgan Chase Bank 6.85% Notes $14,250,000 Deutsche Bank Trust Company 6.85% Notes $12,000,000 Americas 648 Grassmere Park Road Nashville, TN 37211 Attn: John Lasher Telephone (615) 835-3419 Fax (615) 835-3409 Citibank, N.A. 6.85% Notes $11,250,000 3800 Citibank Center B3-15 Tampa, FL 33610 Attn: David A. Leslie Telephone (813) 604-1193 Fax (813) 604-1155 British Telecom Ignite Solution Trade Debt $10,735,634 Network House Brindley Way Apsley HP3 9RR UNITED KINGDOM Attn: Cashiers Office Telephone 01-442-436374 Fax 01-442-436509 Donaldson, Lufkin & Jenrette 9.125% Notes $9,529,000 Securities Corporation Jersey City, NJ 07399 Attn: Al Hernandez Telephone (201) 413-3090 Fax (201) 413-5263 Salomon Smith Barney, Inc. 9.125% Notes $8,536,000 388 Greenwich Street, 16th Floor New York, NY 10013 Attn: Stacey Roberts, Paralegal Office of the General Counsel Telephone (212) 816-9287 Fax (212) 816-4447 Goldman, Sachs & Co. 9.125% Notes $7,200,000 180 Maiden Lane New York, NY 12207 Attn: Patricia Baldwin Telephone (212) 902-0321 Fax (212) 428-3203 Boston Safe Deposit & Trust Co. 9.125% Notes $5,475,000 525 William Penn Place Pittsburgh, PA 15259 Attn: Melissa White Telephone (412) 234-2475 Fax (412) 236-1012 STARCOM WORLDWIDE Trade Debt $5,017,523 Div. of Leo Burdette USA, Inc. 12076 Collection Center Drive Chicago, IL 60693 Telephone (312) 220-3525 Fax (312) 220-1515 State Street Bank & Trust Co. 6.85% Notes $5,000,000 Bank of America Securities 9.125% Notes $3,750,000 LLC, Montgomery Division 300 Harmon Meadow Blvd. Secaucus, NJ 07094 Attn: Scott Reifer Telephone (201) 325-4328 Fax (415) 835-2581 Computer Science Corporation Trade Debt $3,561,290 2100 East Grande Avenue El Segundo, CA 90245 Telephone (310) 615-0311 Fax (310) 322-9768 Walter Rosenthal Convertible $3,556,753 5600 Calpine Drive Promissory Malibu, CA 90265 Note due Telephone (310) 457-2800 July 1, 2008 Fax (310) 457-3440 Investors Bank & Trust Company 9.125% Notes $3,200,000 200 Clarendon Street 9th Floor, Corporate Action Unit/TOP 57 Boston, MA 02116 Attn: Christopher Jones Telephone (617) 937-8627 Fax (617) 351-4308 Citibank, N.A. 9.125% Notes $3,000,000 GE Capital Fleet Services Trade Debt $2,977,499 One Capital Drive Eden Prairie, MN 55344 Attn: Dennis Sorenson Telephone (952) 828-2252 Fax (952) 828-1053 Bank of America Securities 6.85% Notes $2,500,000 LLC, Montgomery Division Ameritrade Holding Corporation 9.125% Notes $2,428,000 132 National Business Parkway Annapolis Junction, MD 20701 Attn: Graham Flower Telephone (240) 568-3505 Fax (240) 568-5781 UBS Paine Webber Inc. 9.125% Notes $2,160,000 1000 Harbor Boulevard Weehawken, NJ 07087 Attn: Jane Flood Telephone (201) 352-7319 Fax (201) 352-3672 AT&T Trade Debt $2,149,941 P.O. Box 9001307 Louisville, KY 40290-1307 Telephone (908) 221-2000 Fax (908) 221-2528 Wilmington Trust Company 9.125% Notes $2,000,000 Sabre Group Trade Debt $1,594,847 7285 Collection Center Drive Chicago, IL 60693 Telephone (682) 605-1000 Fax (817) 269-9000 Italy By Car Litigation $1,500,000 Via Fancesco Crispi, 120 Palermo, Italia 90139 Attn: Legal Department TMP Worldwide Trade Debt $1,500,000 9045 Deerwood Drive Milwaukee, WI 53223 Telephone (212) 351-7000 Fax (212) 956-2142 Perot Systems Ciro Trade Debt $1,500,000 7489 Collection Center Drive Chicago, IL 60693 Telephone (972) 340-5000 Fax (972) 455-4100 National Financial Services Inc. 9.125% Notes $1,400,000 200 Liberty St. New York, NY 10281 Attn: Peter Bov Telephone (877) 612-2047 Fax (508) 263-3808 Deutsche Bank Trust Company 9.125% Notes $1,250,000 Americas First Clearing Corporation 9.125% Notes $1,176,000 10700 Wheat First Drive Glenn Allen, VA 23060 Attn: Charita Thompson Telephone (804) 965-2348 Fax (804) 965-2529 CSC Computer Sciences Trade Debt $1,136,740 279 Farnborough Road Farnborough Hampshire GU14 7LS UNITED KINGDOM Attn: Ivan Goldsmith Telephone 01-252-363000 Fax 01-252-550916 Galileo Corporation Trade Debt $1,101,177 1 Campus Drive Parsippany, NJ 07054-0642 Attn: Tara McGowan Telephone (973) 496-6021 Fax (973) 496-0729 Morgan Stanley Dean Witter 9.125% Notes $1,025,000 One Pierrepoint Plaza, 7th Floor Brooklyn, NY 11201 Attn: John DiMartinez Telephone (631) 254-7400 Fax (631) 254-7618 EV Rental Cars LLC Trade Debt $918,039 23845 Park Bellmonte Calabasas, CA 91302 Telephone (310) 278-1021 Fax (310) 2783-4734 Prudential Securities, Inc. 9.125% Notes $910,000 111 8th Avenue 4th Floor -- Proxy Department New York, NY 10011 Attn: Antonio Lopez Telephone (212) 776-8013 Fax (212) 776-8051 Huntleigh Securities Corporation 9.125% Notes $839,000 8000 Maryland Avenue St. Louis, MO 63105 Attn: Karen Thomas Telephone (314) 236-2207 Fax (314) 236-2401 Worldspan 200 Galleria Pkw., Suite 2045 Trade Debt $772,152 Atlanta, GA 30384-8537 Telephone (800) 537-3118 Fax (770) 563-7020 Stifel, Nicolaus & Company, Inc. 9.125% Notes $764,000 501 N. Broadway, 7th Floor St. Louis, MO 63102 Attn: Chris Wiegand Telephone (314) 342-2248 Fax (314) 342-2270 Safelite Glass Corporation Trade Debt $688,439 2400 Farmer Drive, Suite 5 Columbus, Ohio Attn: Tom Feeney Telephone (614) 842-3000 Fax (614) 210-9012 National Investor Services Corp. 9.125% Notes $685,000 55 Water Street, 32nd Floor New York, NY 10041 Attn: Anthony Demario Telephone (212) 428-8815 Fax (214) 968-0419 ----------------------------------------------------------------- [00006] ORGANIZATIONAL MEETING WITH US TRUSTEE TO FORM COMMITTEES ----------------------------------------------------------------- The United States Trustee for Region III will contact each of Budget Group's 50 largest unsecured creditors at the addresses provided by the Debtors to invite them to an organizational meeting for the purpose of forming one or more official committees of unsecured creditors. Official creditors' committees, constituted under 11 U.S.C. Sec. 1102, ordinarily consist of the seven largest creditors who are willing to serve on a committee. Those committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtors is impossible, the Committee will urge the Bankruptcy Court to convert the chapter 11 cases to a liquidation proceeding. Typically, the U.S. Trustee convenes the organizational meeting within 10 days following the commencement of a chapter 11 case. Creditors who do not send a representative to the organizational meeting typically are not appointed. Contact the U.S. Trustee at (302) 573-6491 to ascertain the time, date and place of this meeting. Immediately following the U.S. Trustee's determinations about how many official committees will be appointed and who will be appointed to each committee, the newly formed committees convene their initial meeting. The first order of business is to listen to the U.S. Trustee explain the powers and duties of the committee as a whole and members' individual responsibilities. The Committee will generally elect a chairman. Thereafter, the Committee typically conducts beauty pageants to select their legal and financial advisors. ----------------------------------------------------------------- [00007] BUDGET RENT A CAR (CANADA) NOT PART OF CHAPTER 11 FILINGS ----------------------------------------------------------------- TORONTO, Ontario -- July 29, 2002 -- Our Franchisor, Budget Group Inc., including certain of its operating subsidiaries in the United States, has announced today that it has filed voluntary petitions with U.S. bankruptcy courts for reorganization under "Chapter 11". This filing does not include Budget in Canada. This Chapter 11 filing only involves Budget Group and its companies in the United States. Domestic and international franchisees are not part of this filing. Pursuant to its recapitalization initiative, the Chapter 11 filing will allow Budget Group to accelerate its previously announced plan to reduce its non-vehicle debt and to seek new investment, while maintaining normal operations. The Company is continuing discussions with interested investors and intends to announce an agreement soon. Indeed, we are confident that Budget Group Inc. will emerge as an even stronger and more viable entity. There will be no disruption to our business in Canada, or to our North American System and operations. In Canada, Budget Rent a Car is a system of Canadian owned and operated franchises. Notwithstanding Budget Group Inc.'s current financial situation, our franchised locations are well capitalized and financially strong. We currently have more than three hundred and sixty five (365) operating locations throughout Canada and employ over 3,000 people with a fleet of 26,000 cars and light trucks - the largest in Canada in all of these categories. Budget Canada enjoys a diverse car and truck rental business both on-airport and in neighborhood markets. Even with our prominent on-airport presence, 65% of our locations in Canada are off-airport, servicing local neighborhoods. Through its diversity and financial independence, Budget Rent a Car of Canada continues to grow and prosper. We are and will continue to be in a position to meet and exceed our clients' vehicle rental needs. ----------------------------------------------------------------- [00008] RYDER SYSTEM, INC., NOT PART OF CHAPTER 11 FILINGS ----------------------------------------------------------------- MIAMI, Florida -- July 29, 2002 -- Ryder System, Inc. (NYSE:R), a $5 billion, Fortune 500 global leader in transportation and supply chain management solutions, today issued a general reminder that its business operations -- including its subsidiary Ryder Truck Rental, Inc. -- are not affiliated with those of Budget Group, Inc., which recently filed for federal bankruptcy protection. Budget Group, Inc. (OTCBB:BDGPA) (formerly NYSE:BD) operates a truck rental business under the name "Ryder TRS" (the "yellow trucks"). Budget Group and its Ryder TRS business unit are not affiliated with Ryder System or Ryder System's subsidiary Ryder Truck Rental, Inc. As such, Budget's current financial circumstances in no way affect the solid financial standing of Ryder System or its ability to serve customers throughout North America and in Latin America, Europe and Asia. Ryder System, Inc., which has one of the nation's largest truck rental and leasing fleets, sold its consumer-oriented "yellow" truck rental division in 1996. Those business operations were subsequently purchased by the current owner, Budget Group, Inc. and operated under the name "Ryder TRS," pursuant to a Trademark License Agreement signed in connection with the 1996 sale. In March of this year, Ryder terminated the Trademark License Agreement and filed suit against Budget and Ryder TRS based on breaches of the Trademark License Agreement and violations of state and federal law. This suit to enforce the termination is pending in federal court in New York. Ryder System, Inc. is a business-to-business enterprise serving commercial customers. The Company has a fleet of more than 170,000 vehicles. The fleet consists of trucks and trailers that are painted and decaled with the logos and graphics of Ryder System customers, or that are painted white and emblazoned with red and black Ryder logos. This fleet of vehicles serves commercial customers on a full-service lease, dedicated contract carriage basis, or as part of comprehensive supply chain solutions. Included within this fleet are approximately 30,000 commercial rental trucks (white, with red and black logos) that are used to supplement customers' fleets during high-volume periods and are available to commercial customers on a short-term basis. *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt ------------------------------------------------------------------------- *** Future editions of Budget Group bankruptcy News are available *** *** only by subscription. Please complete and return the form *** *** included in this issue to set-up an on-going paid subscription. ***