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Hertz Expects Bankruptcy to Sell $ 4.2 Billion in Shares

Hertz traded bankruptcy aircraft on Tuesday, saying Hertz could sell shares of the company to two investment companies for $ 4.2 billion.

Hertz Global Holdings LLC says Knighthead Capital Management և Certares Opportunities will be able to buy the entire reorganized car rental company, but not less than the majority of its shares.

Hertz was one of the top corporations due to the epidemic last year as infections soared, halting worldwide travel for both companies and vacationers.

Hertz filed for bankruptcy in May 2020. Sales growth almost immediately went into negative territory, but the 100-year-old company was already experiencing some turmoil. When it filed for bankruptcy, Hertz appointed its fourth CEO in six years.

However, with the spread of the coronavirus vaccine package, a dirty wandering outbreak is expected to erupt. Investors invest in almost any company that serves travelers. The share of large airlines has grown from 20% to 40% this year. Cruises, lines, hotels and resorts are of such interest.

In this climate, Certares և Knighthead head recently established the CK Opportunities Fund, which focuses on travel and leisure investment.

Hertz, based in Estero, Florida, said the proposed investment, combined with $ 1 billion in first-rate financing, a new $ 1.5 billion revolving credit facility, and a new asset-backed facility to help finance its U.S. vehicles. the fleet, the financing the company needed to complete its reorganization, to exit Chapter 11 of Bankruptcy Protection in early to mid-summer.

The proposed program still needs court approval. A court hearing is scheduled for April 16.


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