Hertz puts new private equity group in driver’s seat

Hertz Global Holdings Inc. has picked a restructuring offer from company bondholders and private-equity investors that have agreed to supply billions of dollars in equity capital the bankrupt rental car provider needs to leave chapter 11.

Hertz tapped a consortium made up of Centerbridge Partners LP, Warburg Pincus LLC and Dundon Capital Partners LLC to sponsor the company’s exit from chapter 11 along with bondholders that agreed to take control of the reorganized company.

The proposal was selected by the company over a rival bid from Knighthead Capital Management LLC and Certares Management LLC in a competitive process, according to papers filed Saturday in the U.S. Bankruptcy Court in Wilmington, Del.

Any restructuring plan that Hertz puts forth requires approval from the bankruptcy court and will be subjected to a creditor vote. Hertz said Saturday that more than 85% of its unsecured bondholders, the biggest voting class in the bankruptcy, support the proposal backed by Centerbridge, Warburg and Dundon.

Hertz Chief Executive Officer Paul Stone said the investor group would also provide significant operational experience in fleet financing and management. The company has targeted the end of June to emerge from bankruptcy as the travel industry rebounds from a downturn brought on by the Covid-19 pandemic.

Source: Wall Street Journal