My good friend Dick [ name ] had a great concern for the occasion and that convinced me to join him in a cash rental cars , where he was CEO. He assured me that the company was facing its past and had an excellent chance we could swap assets if bankruptcy .
This is exactly what happened and July 1, 1967 , we owned Capital Rent A Car, Inc. 1st National Bank of Fort Lauderdale gave us the 88 cars that had the title more than $ 20,000 of initial working capital and a moratorium on two months in the payment of the cash rental cars. Of course , the cash rental cars not worth anywhere near the amount they are owed and had two dimes to rub together. But no other opportunity he jumped in.
During the next seven years , we could not take effective decisions , never a business decision. The problem was that we were always short on the side of the body. We have grown because we were aggressive and innovative , but still short of cash . To stay alive for the next seven years, we have sought and obtained a moratorium kited checks and have always done well.
We did business with major lenders , GMAC , Ford Motor Credit , Chrysler and about 4 or 5 local banks. All were thankful that we were two guys who were stupid good sincere cooperative, but sadly inept. However, there was a company that does not waste time . It was Harry who had a small local rental company cash rental cars. We think all our lenders are in the business of lending money. No Harry , who was in business to make a living. Although Harry had a larger , 75 or 80 % healed Harry has always paid on time and not knowing who has paid dividends partner.
1973 came and brought Arab / Israeli Yom Kippur War , plus the high price of gasoline and a gasoline embargo the following spring . Our business model was to give the cash rental cars a good size, reflecting no means compact and heavy for medium and large sedans . Therefore, after the 73-74 winter season we could not have unnecessary inventory. With rising gas prices and gas shortages auto wholesalers wanted to buy fuel-efficient subcompact and maybe some covenants. Middle and large size cash rental cars were essentially the proof of sale . That was offered by the big cash rental cars is not enough to pay the loans and obtain titles . And we do not have the money to buy the securities that ended up seeing junk cash rental cars.
In May, the park surrounded by rust we think about the future, especially in Florida August 20 1974 , all cash rental cars must have labels next year purchased on that date. We were looking at $ 20,000 and it was all we could do is watch. With bankruptcy staring us in the face , we thought our alternatives .
That's when Harry came to mind. He said he always wanted to be in the cash rental cars hire site daily . Leasing of cash rental cars was good, but we were in the most exciting part of the business. No once said , should said a dozen times . Well, we could help.
Luckily Harry did not know that our financial difficulties and had more cash rental cars than we could rent . No wonder we rented Dodge Darts 400 delivered in June for the summer season. In July, after the cash rental cars were delivered , which gave the new Harry. We did not have the money to hire and dismiss our only alternative was bankruptcy. As expected Harry , a Hungarian immigrant with a temper exploded. We reminded him that he always wanted to be in the business of cash rental cars. He had to talk with his senior partner . Our construction contracts can be negotiated , utilities must be paid leave and Southern Bell telephone numbers if they are paying their bills. And Dick and I would love to work for the new company and offer our experience [? ] .
And that's exactly what happened cash rental cars. Dick and I went bankrupt and societies. The new company opened its doors on September 1, 1974 at five sites , Miami, Fort Lauderdale , Orlando , Tampa and West Palm . John had his accountant act as president until Mike was hired as president in 1976. Mike had rights of first refusal should John will want to sell the business.
The name of the leasing company was Alamo cash rental cars Harry . Logically , the name of the cash rental cars company became Alamo Rent A Car, cash rental cars . But this is not the rest of the story . Everything went well , very well for the players.
To finish the story that you should know that John was the senior partner John D. John D. And Catherine T. MacArthur MacArthur Foundation Trust.
John died in the fall of 1977 and Mike with a group of 8 other people bought the business administration in 1978. I do not know the price, but I'm sure that the trustees did not say, " let's take a cancellation. " Mike , finally , to my knowledge, was the remaining shareholder and sold the company for a large sum of hundreds of millions at the end 90s .
