Bankruptcy court fixes Hertz’s restructuring plan

The bankruptcy court has ratified Hertz’s restructuring plan, which helps clear the way for the car rental company to emerge from Chapter 11 bankruptcy protection by the end of the month.

Hertz will likely emerge from Chapter 11 bankruptcy protection by the end of the month after a bankruptcy court ratified the troubled car rental company restructuring plan.

Hertz Global Holdings Inc., which filed for bankruptcy protection in May 2020, said Thursday that its plan would erase more than $5 in debt and provide more than $2.2 in liquidity. Creditors will be paid in full and existing shareholders will receive more than $1 billion in value.

Hertz was in the midst of the first major corporations to be toppled by the pandemic last year as infections grew and tourism shut down for both companies and vacationers on a global scale.

It announced in March that it could sell a controlling stake in the company to two investment firms for $4.2 billion. Knighthead Capital Management and Certares will have the opportunity to buy out the majority of its shares from the entire reorganized car rental company, but no less opportunity. for the proposed investment, combined with a new $1 billion first-lien financing, a new $1.5 billion revolving credit facility, and a new asset-backed securitization facility to finance its US vehicle fleet The company was seen as a way to provide the necessary funds to complete its restructuring.

Hertz’s emergency from bankruptcy protection comes at a time when Americans are getting vaccinated for COVID-19 and eager to start the journey again. Demand for car rentals is on the rise, and with limited supply, prices are skyrocketing.

The Florida company operates the Hertz, Dollar and Thrifty vehicle rental brands in North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand.


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