Two investment companies will invest in a bulk stake in Hertz International Holdings for $4.2 billion under a restructuring plan expected to aid it out of personal bankruptcy by early- to mid-summer, the automobile rental firm stated in a filing on Tuesday.
Under the proposed investment, Knighthead Funds Administration and Certares Alternatives will invest in up to 100% of Hertz’s shares, with the cash expected to finance its U.S. car fleet and slash company personal debt.
“We have been … repositioning our business enterprise as we prepare for improved vacation demand as the pandemic subsides,” Main Executive Paul Stone stated.
Hertz submitted for personal bankruptcy security in May immediately after its business enterprise was decimated by the COVID-19 pandemic and talks with creditors unsuccessful to final result in significantly-needed aid.
The firm stated on Tuesday it submitted a proposed plan of reorganization with the U.S. personal bankruptcy courtroom for the district of Delaware, which is expected to approve the conditions of the proposed investment at a listening to on April sixteen.