Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hertz confirms new offer from Knighthead, Certares for bankruptcy exit

Published 05/04/2021, 08:46 AM
Updated 05/04/2021, 08:56 AM
© Reuters. FILE PHOTO: A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020.  REUTERS/Eric Gaillard

© Reuters. FILE PHOTO: A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020. REUTERS/Eric Gaillard

(Reuters) - Hertz Global Holdings (OTC:HTZGQ) Inc said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management (NYSE:APO) to fund the car rental company's exit from Chapter 11 bankruptcy.

The revised offer aims to fund Hertz's bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion.

A media report on Monday said Knighthead Capital Management and Certares Management's latest offer gives Hertz an enterprise value of more than $6.2 billion.

In March, Hertz said Knighthead and Certares had agreed to buy a majority stake in the company for $4.2 billion.

© Reuters. FILE PHOTO: A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020.  REUTERS/Eric Gaillard

The new offer also rivals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital to fund for Hertz's exit from bankruptcy.

Hertz said it would evaluate the new offer and has not made a decision. The company's shares fell 7% to $2.98 in premarket trading.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.