Two funding companies will purchase a majority stake in Hertz International Holdings for $4.2 billion underneath a restructuring plan anticipated to assist it out of chapter by early- to mid-summer, the automotive rental firm mentioned in a submitting on Tuesday.
Below the proposed funding, Knighthead Capital Administration and Certares Alternatives will purchase as much as 100% of Hertz’s shares, with the funds anticipated to finance its U.S. automobile fleet and slash company debt.
“We have been … repositioning our enterprise as we put together for elevated journey demand because the pandemic subsides,” Chief Government Paul Stone mentioned.
Hertz filed for chapter safety in Might after its enterprise was decimated by the COVID-19 pandemic and talks with collectors did not lead to much-needed reduction.
The corporate mentioned on Tuesday it filed a proposed plan of reorganization with the U.S. chapter court docket for the district of Delaware, which is predicted to approve the phrases of the proposed funding at a listening to on April 16.
