Hertz Determines Revised Reorganization Proposal From Affiliates Of Knighthead, Certares And Apollo Constitutes A Superior Proposal yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
Hertz could be bought out of its bankruptcy in a deal that could give the troubled rental-car giant an enterprise value exceeding $6.2 billion.
Investment firms Knighthead Capital Management and Certares Management recently submitted an offer to buy Hertz Global Holdings Inc out of its bankruptcy,
Auto News reports. The rental-car company is said to be evaluating this proposal to see if it is higher than one from its current reorganization sponsor backed by Centerbridge Partners.
It is understood this latest bid includes fully committed debt and equity financing. Through the proposal, Hertz’s existing equity holders would receive 50 cents per share and the chance to participate in either a boosted $1.3 billion rights offering or warrants for up to 10 per cent of the reorganized company. This deal would be worth roughly $2.25 a share.
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Hertz Global Holdings Inc said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management 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.
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Hertz Confirms New Sponsor Offer In Seesaw Del. Ch. 11
Law360 (May 4, 2021, 12:57 PM EDT) Hertz Global confirmed early Tuesday receipt of a sweetened sponsorship offer from the original plan backers for the bankrupt rental giant s Chapter 11, potentially setting up a final three-day deadline for a topping offer by the current leader and a potential auction on May 10.
Hertz Global said Tuesday it has received a sweetened sponsorship offer for its Chapter 11, potentially setting up an auction on May 10. (iStock.com/ablokhin) Affiliates of Knighthead Capital Management LLC, Certares Opportunities LLC, and Apollo Capital Management LP met Hertz s Sunday deadline for its new offer, intended to trump earlier, usurping bids led by Centerbridge Partners.
Then came a competing offer at the 11th hour, just as Hertz sought court approval to move ahead with its chosen sponsors.
Now, Hertz will conduct another round of bidding to give the competing group a full and fair opportunity to present their best proposal, according to court documents.
If necessary, the current plan sponsors would have the opportunity to counter the other proposal at an auction.
If there s an auction, it s to be held May 10 in a virtual room, under the supervision of Hertz s attorneys.
Hertz bidding process laid out
In court documents, Hertz said the new process is designed to ensure that it chooses the reorganization plan that s in the best interests of the company and its creditors and equity holders as a whole.