Hertz confirms new offer from Knighthead, Certares for bankruptcy exit

FILE PHOTO: A logo of car rental company Hertz is seen on a building during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020. REUTERS/Eric Gaillard

(Reuters) – Hertz Global Holdings Inc said on Tuesday it had received a revised offer from Knighthead Capital Management, Certares Management and Apollo Global Management to fund the car rental company’s exit from Chapter 11 bankruptcy.

The revised offer aims to fund Hertz’s bankruptcy exit through direct common stock investments of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion.

A media report on Monday said Knighthead Capital Management and Certares Management’s latest offer gives Hertz an enterprise value of more than $6.2 billion.

In March, Hertz said Knighthead and Certares had agreed to buy a majority stake in the company for $4.2 billion.

The new offer also rivals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to provide equity capital to fund for Hertz’s exit from bankruptcy.

Hertz said it would evaluate the new offer and has not made a decision. The company’s shares fell 7% to $2.98 in premarket trading.

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