Planet42 creditors receive plan from parent company Inclusion and restructuring advisor Tarmo Peterson

Creditors of Estonian car rental company Planet42 have received an advanced plan from parent company Inclusion and restructuring adviser Tarmo Peterson, as it was impossible to save the South African business from closure. According to Peterson, the secured creditors (foreign institutions) did not agree to change the loan terms in order to free up the capital needed to restructure Planet42. An investment of €10M-€15M was needed to save the business in South Africa.

The enhanced restructuring plan by Inclusion and Tarmo Peterson offers creditors two options. Creditors who agree to exchange their claim for a block of shares in the reorganized company will become shareholders in Inclusion. Creditors who do not agree to exchange their claim for a block of shares will receive 5.5% of the principal debt and 7.5% per annum after a one-year grace period. The restructuring plan can be achieved with the development and growth of the Mexican business, in which the proceeds from the South African deal will also be invested. The stake in the Mexican subsidiary is expected to be worth €4M-€5M by the end of 2028. Creditors have until 15 November to vote on the plan.

At the end of October, Planet42 presented a rescue plan. According to it, UK-registered P42 UK Ltd would pay Inclusion (a parent company of Planet42) €1,8M for the South African unit. The South African company will thus become a direct subsidiary of the UK parent company. 

The owners and managers of the business would be predominantly local investors, while the Estonian investors will retain the Mexican line of business. According to recent updates, Inclusion received over €2M, plus €50M in guarantees to secure the South African obligations.

Founded in 2017 by Estonian entrepreneurs Eerik Oja and Marten Orgna, Planet42 buys used cars from a network of car dealers and connects them with customers. The platform works on a subscription basis, without the need to physically inspect or meet the customer. The startup helps people, who are unable to secure financing from traditional institutions to buy a car.