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Hertz Lenders Push Alternate Plan for Exit From Bankruptcy

  • Unsecured creditor group proposes swapping holdings for equity
  • Rental company’s board hasn’t received a formal proposal
Hertz Gets Lenders' Forbearance In Bid To Avert Bankruptcy
Photographer: David Paul Morris/Bloomberg
Updated on

A group of unsecured lenders to Hertz Global Holdings Inc. are proposing an alternative reorganization of the rental car company that would take it public, a move that counters a plan to sell the company to two investment funds for as much as $4.2 billion.

The lenders want to convert their holdings in the bankrupt company into shares of the reorganized company, which could be traded publicly, the people said. If Hertz’s board were to accept that plan, it would supersede a bid from Knighthead Capital Management and Certares Management to buy the company.