Bangkok Post

Hertz gets sweetened takeover bid

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Knighthead Capital Management and Certares Management for a second time sweetened their proposal to buy Hertz out of bankruptcy as the rental car company’s board meets to review bids, people with knowledge of the matter said.

The latest plan, which was submitted on Tuesday, would hand shareholde­rs more value — specifical­ly a 40% stake in the reorganise­d company through a combinatio­n of direct investment and a more than $1 billion equity rights offering, the people said.

Representa­tives for Knighthead and Certares declined to comment. A representa­tive for Hertz didn’t immediatel­y respond to a request for comment.

Hertz shares reversed earlier losses to close up 5.6% at $1.90 after Bloomberg reported on the new plan.

The battle over ownership of Hertz has been heating up. The company earlier this month picked a plan from Centerbrid­ge Partners, Warburg Pincus and Dundon Capital Partners that outbid an earlier Knighthead deal.

Last week, Knighthead and Certares responded with a plan that assigned Hertz an enterprise value of around $6.2 billion, paid senior lenders and unsecured bondholder­s in full, and offered existing equity holders a shot at recovery.

The deal was backed by investors including Apollo Global Management Inc.

The Centerbrid­ge-led proposal would swap unsecured funded debt claims for 48.2% of the equity in the reorganise­d company and the right to purchase an additional $1.6 billion of equity.

Holders of general unsecured claims would recover around 75 cents on the dollar while existing equity holders would be wiped out.

In a court hearing last week, US Bankruptcy Judge Mary Walrath delayed approval of a creditor vote on the Centerbrid­ge-backed reorganisa­tion to give Hertz time to consider both proposals.

Any bankruptcy plan Hertz selects is subject to creditor and court approval.

 ?? AFP ?? Hertz logo is seen in Landover Hills, Maryland in this file photo.
AFP Hertz logo is seen in Landover Hills, Maryland in this file photo.

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