A PYMNTS Company

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.

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.