Hertz selects Centerbridge, Warburg, Dundon, sponsored exit plan for Chapter 11

© Reuters. The Hertz car rental desk is located at Nice International Airport

(Reuters) – Hertz Global Holdings (OTC 🙂 Inc announced on Saturday that Centerbridge Partners, Warburg Pincus and Dundon Capital Partners have selected an expanded proposal to provide the equity required to fund the car rental company's Chapter 11 exit.

The proposed deal, which must be approved by the Delaware District Bankruptcy Court, will be backed by holders of over 85% of the company's unsecured debt, Hertz said in a statement.

Under the agreement, the supporting shareholders have given the green signal to exchange the unsecured funded claims against the company for approximately 48.2% of the equity of the reorganized company and the right to acquire additional equity of $ 1.6 billion to support.

They have also pledged to purchase or otherwise stop all of the $ 1.6 billion equity that is being offered to the owners of the company's unsecured funded debt.

"This plan will meet all of the goals we set for ourselves through our financial restructuring. Our new sponsors, combined with our strong leadership team, bring significant operational fleet finance and management experience that will benefit all of our stakeholders," said Paul Stone, Chief Executive said.

Hertz filed for bankruptcy protection in May when travel slumped during the pandemic, the car rental business slammed, and talks with creditors didn't bring much-needed relief.

On March 2, Hertz announced that two investment firms – Knighthead Capital Management LLC and Certares Opportunities LLC – acquired a controlling stake in the company for $ 4.2 billion as part of a restructuring plan that is expected to bail out of bankruptcy by early summer . USD.

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