Good News for Hertz Rental Car
Two investment firms will buy a majority stake in Hertz Global Holdings Inc for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer.
Under the proposed investment, Knighthead Capital Management LLC and Certares Opportunities LLC will buy up to 100% of Hertz’s shares, with the funds expected to finance its U.S. vehicle fleet and slash corporate debt.
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 on Tuesday it filed a proposed plan of reorganization with the U.S. bankruptcy court for the district of Delaware, which is expected to approve the terms of the proposed investment at a hearing on April 16.