Case Study


CLIENT: MBIA Insurance Corp.

Gordian Group acted as financial advisor to MBIA in connection with its $3.6 billion exposure in ANC’s bankruptcy reorganization.

Business Profiles


ANC Rental Corp., (“ANC”), the parent company of Alamo Rent A Car and National Car Rental, like many rental car companies, was the victim of reduced travel post the September 11, 2001 terrorist attacks in New York. With the resulting drop-off in rental volume, ANC found itself with an oversized fleet and an unsustainable capital structure. ANC filed Chapter 11 in November 2001 with over $5 billion in liabilities. MBIA insured and was at risk for approximately $3.6 billion of ANC’s car fleet financing at the time of the filing.


MBIA retained Gordian Group to assist in working out its exposure to ANC. We analyzed ANC’s strategic and financial situation, developed strategies to reduce MBIA’s exposure and assisted MBIA in its negotiations with prospective acquirers of ANC.


Through a combined strategy of tough negotiating and active support of ANC’s operational and financial restructuring efforts, MBIA’s exposure was reduced by more than two-thirds, while the fees it earned from ANC quadrupled. Moreover, MBIA has not reported any losses, to date, due to its exposure to ANC and its exposure has continued to shrink.