Hertz gets a lifeline out of bankruptcy from 2 investment firms
Two investments firms would buy a majority stake in Hertz Global Holdings for $4.2 billion (R63bn) under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer, the car rental company said in a filing yesterday.
Under the proposed investment, Knighthead Capital Management and Certares Opportunities will buy up to 100 percent of Hertz’s shares, with the funds expected to finance its US 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.
The company said yesterday it filed a proposed plan of reorganisation with the US bankruptcy court for the district of Delaware, which is expected to approve the terms of the proposed investment at a hearing on April 16.