BLOOMBERG
Hertz Global Holdings Inc. picked Knighthead Capital Management and Certares Management to buy the company out of bankruptcy, capping a dramatic brawl for control of the car renter as travel rebounds, according to people with knowledge of the matter.
The company selected a bid from the firms over a competing group led by Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, the people said, asking not to be identified discussing private plans. The winning plan would hand shareholders value of around $8 a share, made up of about $240 million in cash and warrants for nearly 20 percent of the reorganized equity, they added.
(Bloomberg) In a deal that hands a huge victory to shareholders of bankrupt Hertz Global Holdings Inc., the car renter picked Knighthead Capital Management and Certares Management to buy the company out of Chapter 11, capping a dramatic brawl for control of the company.The deal, which gives a reorganized Hertz an enterprise value of $7.43 billion, was picked over an offer from a competing group led by Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, according to people with knowledge of the matter, who asked not to be identified because the plan hasn’t been made public. The Knighthead-Certares plan would give equity holders a recovery of about $8 a share a package that’s made up of about $240 million in cash and warrants for nearly 20% of the reorganized company, the people said.Hertz shares which up until two months ago were faced with the prospects of being completely wiped out under an earlier plan soared as much as 41% Wednesday to as high as
Knighthead, Certares seen as winners of Hertz bankruptcy auction â Bloomberg By Syndicated Content
May 12, 2021 | 8:16 AM
(Reuters) â Investment firms Knighthead Capital and Certares Management appear to have won an auction to fund U.S. car rental firm Hertz Globalâs exit from bankruptcy, according to a Bloomberg News reporterâs tweet https://bit.ly/3oid2K8 on Wednesday.
The firms along with private equity company Apollo Global Management have been in a bidding war with Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital for Hertzâs exit from bankruptcy exit.
Hertz was not immediately available for comment.
During the depths of the pandemic, it wasn’t even clear that car rental giant Hertz would even be around today. It is, and the surprises don’t stop there.
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In a court-sanctioned auction process, the Knighthead Capital Management, Certares Opportunities and Apollo Capital Management won a court-approved auction to lead Hertz out of Chapter 11 bankruptcy.
The group, subject to a bankruptcy court hearing slated for Friday, would fund $2.9 billion of stock investments in Hertz, issue $1.5 billion in preferred stock to Apollo, and execute an offering of $1.63 billion of common stock for existing Hertz shareholders.
The deal announced Wednesday is the culmination of a bidding war that began in early March between the Knighthead Capital Management-Certares Management group and rivals Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, which each traded a couple of rival bids. At various junctures, the competing bids received the blessing of Hertz management.