Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

Hertz selects Chapter 11 exit plan backed by Centerbridge, Warburg, Dundon

Published 04/03/2021, 05:31 PM
Updated 04/03/2021, 05:35 PM
© Reuters. The desk of car rental company Hertz is seen at Nice International airport

(Reuters) - Hertz Global Holdings (OTC:HTZGQ) Inc said on Saturday it has selected an enhanced proposal from Centerbridge Partners, Warburg Pincus, and Dundon Capital Partners to provide the equity capital required to fund the car rental company's exit from Chapter 11.

The proposed deal, which is subject to approval by the U.S. bankruptcy court for the district of Delaware, is supported by holders of over 85% of the company's unsecured notes, Hertz said in a statement.

Under the deal, the supporting noteholders have given the green signal to support the exchange of the unsecured funded debt claims against the company for approximately 48.2% of the equity in the reorganized company, and the right to purchase an additional $1.6 billion of equity.

They have also committed to purchase, or otherwise backstop, the full $1.6 billion of equity being offered to the holders of the company's unsecured funded debt.

"This plan accomplishes all the goals we set out to achieve through our financial restructuring. Our new sponsors combined with our strong leadership team will bring significant operational experience across fleet financing and management, which will benefit all of our stakeholders," Chief Executive Paul Stone said.

Hertz filed for bankruptcy protection in May as travel plummeted during the pandemic, slamming the car rental business, and talks with creditors failed to result in much-needed relief.

© Reuters. The desk of car rental company Hertz is seen at Nice International airport

On March 2, Hertz said two investment firms -- Knighthead Capital Management LLC and Certares Opportunities LLC -- will buy a majority stake in the company for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer.

Latest comments

a Fire Sale ??
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.