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Hertz Gets Sweetened Offer In Bidding War

By  |  April 22, 2021

Knighthead Capital Management and Certares Management, for a second time, sweetened their proposal to buy Hertz out of bankruptcy as the rental car company’s board meets to review bids, according to people with knowledge of the matter.

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    The latest plan, which was submitted Tuesday afternoon, April 20, would hand shareholders more value — specifically a 40% stake in the reorganized company through a combination of direct investment and a more than US$1 billion equity rights offering, the people said.

    The battle over ownership of Hertz has been heating up. The company earlier this month picked a plan from Centerbridge Partners, Warburg Pincus and Dundon Capital Partners that outbid an earlier Knighthead deal. Last week, Knighthead and Certares responded with a plan that assigned Hertz an enterprise value of around $6.2 billion, paid senior lenders and unsecured bondholders in full.