BONITA SPRINGS, Florida: Rental car giant Hertz Global Holdings Inc announced on Saturday that it has begun the process of emerging from bankruptcy.
In May 2020, as the rental car industry was devastated by there being no traveling during the pandemic, Hertz filed for bankruptcy protection, as talks with creditors failed to reach agreement on paying off debts.
Under the just-announced agreement, Centerbridge Partners, Warburg Pincus, and Dundon Capital Partners will fund Hertz's departure from Chapter 11.
The proposed proposed financial plan is supported by 85 percent of the company's unsecured notes, Hertz said in a statement.
Among the provisions of the debt agreement, approximately 48.2 percent of the equity in the reorganized company will be made available to claimants, along with the rights to purchase an additional $1.6 billion of equity.
"This plan accomplishes all the goals we set out to achieve through our financial restructuring. Our new sponsors, combined with our strong leadership team, will bring significant operational experience across fleet financing and management, which will benefit all of our stakeholders," Chief Executive Paul Stone said.