Skift Take
After 2 quotes, and now a modified bid, the bidding war to lead Hertz out of insolvency is heating up. The proverbial ball is in Hertz’s court at the moment.
Dennis Schaal
Hertz Global Holdings Inc stated on Tuesday it had gotten a revised deal from Knighthead Capital Management, Certares Management and Apollo Global Management to fund the cars and truck rental business’s exit from Chapter 11 personal bankruptcy.
The revised offer intends to fund Hertz’s bankruptcy exit through direct typical stock financial 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 stated Knighthead Capital Management and Certares Management’s newest deal gives Hertz a business worth of more than $6.2 billion.
In March, Hertz stated Knighthead and Certares had actually agreed to purchase a majority stake in the business for $4.2 billion.
The brand-new deal also equals a bid backed by private investment firms Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, to supply equity capital to money for Hertz’s exit from insolvency.
Hertz stated it would examine the brand-new deal and has not decided. The business’s shares fell 7% to $2.98 in premarket trading.
(Reporting by Shreyasee Raj and Ankit Ajmera in Bengaluru; Editing by Amy Caren Daniel)
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