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What We re Reading This Week [April 19, 2021] - Insolvency/Bankruptcy/Re-structuring

To print this article, all you need is to be registered or login on Mondaq.com. Bloomberg and CNN reported on the potential impact the pause in the use of Johnson & Johnson s Covid-19 shot could have.  In the wake of the announcement, stay-at-home company stocks bounced, while travel company stocks fell as investors worried about the potential long-term impact.  [Bloomberg; April 13, 2021 & CNN; April 14, 2021] The Wall Street Journal reported on an intensifying bidding war for Hertz as previously-outbid investors returned to the table with a counteroffer for the car rental company in chapter 11 with a valuation of $6.2 billion. The revised bid by Knighthead Capital Management LLC and Certares Management

Hertz bankruptcy: Company seeks judge s approvals as deadline nears

Not for long, however. On Friday, the judge postponed decisions on the plan after an alternative offer surfaced to fund the company s exit from bankruptcy a day earlier, giving Hertz little time to adequately review it. Hertz attorney Tom Lauria, with White & Case, characterized the offer as a classic bear hug, and an 11th-hour uninvited proposal leaked to the press. The Wall Street Journal ran a story about the competing plan, ahead of the court hearing after getting a news tip about it from the investors behind it. Investment firms Knighthead Capital Management and Certares Management have strengthened their bid, in hopes of beating out the group Hertz chose over them a few weeks ago.

Hertz gets sweetened offer as bankruptcy bidding war escalates

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Hertz bankruptcy: Company seeks judge s approvals as deadline nears

Hertz bankruptcy: Company seeks judge s approvals as deadline nears
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Knighthead, Certares sweeten bid to fund Hertz s bankruptcy exit: WSJ

By Reuters Staff 2 Min Read The desk of car rental company Hertz is seen at Nice International airport during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020. REUTERS/Eric Gaillard (Reuters) - Investment firms Knighthead Capital Management and Certares Management sweetened their bid to fund Hertz Global’s exit from bankruptcy, valuing the U.S. car rental firm at $6.2 billion, the Wall Street Journal reported on Friday. Knighthead and Certares have proposed taking control of Hertz with backing from some existing shareholders of the rental firm and private-equity company Apollo Global Management Inc, which has agreed to supply up to $2.5 billion in preferred equity financing, the report said here, citing people familiar with the matter.

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