Hertz Global Holdings Inc., the Bonita Springs, Florida-headquartered American multinational car rental group operating on 10,200 locations across the globe, had issued a statement late on Saturday saying that the car rental megalith had agreed to an enhanced proposal from a consortium of private equity funds involving New York City’s Centerbridge Partners, Warburg Pincus and Texas-based Dundon Capital Partners, to finance the capitals required for the car rental’s exit from a Chapter 11 bankruptcy.
Besides, the latest Chapter 11 exit deal for Hertz Global Holdings Inc., which had filed for court protections back in May last year due to a pandemic-led slump in domestic and overseas traffics, could be vindicated as a vivid sign of a gradual recovery in US travel and leisure industry, as Biden Administration has been mulling a jubilant re-opening of US economy with trillions of dollars in investments and fiscal stimulus, suggested analysts.
Hertz mulls potential exit of a chapter 11 bankruptcy
On top of that, the proposed deal - subject to an approval in US bankruptcy court for the district of Delaware – had already received a go-ahead signal from more than 85 per cent holders of the bankrupted car rental’s unsecured debts, a type of loan that is not backed by company assets, Hertz said in the statement.
Aside from that, under the financial terms of the deal, Hertz’s unsecured debt holders had agreed to an exchange of their unsecured debt claims for 48.2 per cent equity in the revamped entity with rights to acquire an additional $1.6 billion worth of equities.
Meanwhile, referring to an out and out optimism over the car rental giant’s latest Chapter 11 exit deal, Hertz Chief Executive Paul Stone said in a statement, “This plan accomplishes all the goals we set out to achieve through our financial restructuring.
Our new sponsors combined with our strong leadership team will bring significant operational experience across fleet financing and management, which will benefit all of our stakeholders”.