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Hertz to Sell to Knighthead, Certares to Exit Bankruptcy

  • Reorgaization proposal would wipe out shareholders, repay debt
  • Plan requires creditor vote, court approval in coming months
Updated on

Hertz Global Holdings Inc. received a bid from Knighthead Capital Management and Certares Management to purchase the rental-car company out of bankruptcy for as much as $4.2 billion, according to court documents.

Under the plan, Knighthead and Certares would take control of Hertz when it emerges from its Chapter 11 reorganization, with the final value of the deal dependent on how much existing lenders participate in the financing. The bid is backed by a travel industry-focused investment fund that Knighthead and Certares created last year to take advantage of an expected rebound in companies that were disrupted by the Covid-19 pandemic.