The ongoing battle for control of Dollar Thrifty has taken another twist.

The dispute, which has seen Hertz, the second largest US car rental company, and Avis, the third largest, locked in an increasing bitter battle for the smaller outfit, has been ongoing since before last Christmas, when Hertz offered the initial USD$1.2 billion bid that sent shockwaves across the American car hire industry.

Now, the Avis Budget Group has announced that it has amended its credit facility in order to secure the necessary financing for a possible takeover of Dollar Thrifty. Recent poor performances on the stock market had meant that the potential of a partial share offer bid were left with little support, forcing Avis to rely on cash to secure any deal. In a filing with US regulators, Avis claimed it amended credit facility through leading broker JP Morgan, which would allow it to revise and update its definition of consolidated financial resources, while excepting first and second-lien debts. According to banking sources, the JP Morgan-led credit facility would enable Avis to tap into an additional half a billion dollars.

Despite the fact that Dollar Thrifty has already signed an initial merger agreement with Hertz, Avis has stated categorically that it intended to make a ‘substantially higher bid’, and that it was surprised that regulators had not allowed for this to be done in the first instance. As yet, no official offer has been made.