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.