Breaking Stories

Hertz endorses improved Knighthead bid in effort to exit bankruptcy

The desk of car rental company Hertz is seen at Nice International airport during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020.

Eric Gaillard | Reuters

Car rental company Hertz Global Holdings on Tuesday backed an improved bid from Knighthead Capital Management and Certares Management to support its exit from Chapter 11 bankruptcy, people familiar with the discussions told “Halftime Report” host Scott Wapner.

The board’s endorsement of the Knighthead-Certares bid represents a change of course for the company, which previously had chosen a plan supported by Centerbridge Partners, Warburg Pincus and Dundon Capital.

The new bid values Hertz at more than $6 billion. The company’s stock rallied about 20% at the start of trading Wednesday after The Wall Street Journal previously reported Hertz’s decision to endorse the sweetened bid. It was last seen at around $3.80 per share.

Oaktree Capital, co-founded by Howard Marks, would backstop a portion of the new equity financing. Glenview Capital, run by Larry Robbins, is one of the company’s largest stakeholders with about 4.5 million shares.

Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now

CNBC’s Scott Wapner contributed reporting.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *