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Hertz set to ride out of bankruptcy with $4.2 billion from investment firms

Published 03/02/2021, 07:35 AM
Updated 03/02/2021, 08:15 AM
© Reuters. The desk of car rental company Hertz is seen at Nice International airport

(Reuters) - Two investment firms will buy a majority stake in Hertz Global Holdings (OTC:HTZGQ) Inc for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer, the car rental company said in a filing on Tuesday.

Under the proposed investment, Knighthead Capital Management LLC and Certares Opportunities LLC will buy up to 100% of Hertz's shares, with the funds expected to finance its U.S. vehicle fleet and slash corporate debt.

"We've been...repositioning our business as we prepare for increased travel demand as the pandemic subsides," Chief Executive Paul Stone said.

Hertz filed for bankruptcy protection in May after its business was decimated by the COVID-19 pandemic 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

The company said on Tuesday it filed a proposed plan of reorganization with the U.S. bankruptcy court for the district of Delaware, which is expected to approve the terms of the proposed investment at a hearing on April 16.

Latest comments

Carl Icahn has lost more money shorting the market and buying dying companies he could salvage the deficit with his losses.... Some how he's still dubbed an ambassador to the market. it's like a joke....
This company is worth easy 8-10 billion
With economic growth in sight, it should be a good investment for the time being.
Wow Is it really even worth 4.2 BILLION? I wonder if Elon is in the mix?
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