During the depths of the pandemic, it wasn’t even clear that car rental giant Hertz would even be around today. It is, and the surprises don’t stop there.
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In a court-sanctioned auction process, the Knighthead Capital Management, Certares Opportunities and Apollo Capital Management won a court-approved auction to lead Hertz out of Chapter 11 bankruptcy.
The group, subject to a bankruptcy court hearing slated for Friday, would fund $2.9 billion of stock investments in Hertz, issue $1.5 billion in preferred stock to Apollo, and execute an offering of $1.63 billion of common stock for existing Hertz shareholders.
The deal announced Wednesday is the culmination of a bidding war that began in early March between the Knighthead Capital Management-Certares Management group and rivals Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, which each traded a couple of rival bids. At various junctures, the competing bids received the blessing of Hertz management.
Hertz Selects $6 Billion Bid From Knighthead, Certares And Apollo To Fund Chapter 11 Exit
REVISED PROPOSAL WOULD PAY ALL CREDITORS IN FULL AND PROVIDE SUBSTANTIAL INCREASE IN THE RECOVERY TO SHAREHOLDERS
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ESTERO, Fla., May 12, 2021 /PRNewswire/ Hertz Global Holdings, Inc. (OTCPK:HTZGQ) ( Hertz or the Company ) today announced that, following the completion of the auction previously approved by the Court in its Chapter 11 case, Hertz has selected and approved a revised proposal from certain funds and accounts managed by affiliates of each of Knighthead Capital Management LLC ( Knighthead ), Certares Opportunities LLC ( Certares ) and Apollo Capital Management, LP ( Apollo and together with Knighthead and Certares, the KHCA Group ) to provide the equity capital required to fund Hertz s revised Plan of Reorganization and exit from Chapter 11. The proposed agreements with the KHCA Group, as well as any necessary modificat
Real estate network looks for new Boston foothold
Updated May 12, 2021, 1 hour ago
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NAI Global returns to Boston
NAI Global, the New York-based network of commercial real estate firms, has returned to Boston, this time through a newly launched pilot program aimed at signing up individual brokers to its network in cities where it does not have an affiliated firm. The first in Boston to join NAI in this effort is JP Plunkett, founder of Red Dome Realty, a four-person real estate firm based in Dorchester. Plunkett said his firm will keep its name, while reflecting the NAI affiliation in its branding, and he will help the umbrella company search for other members in Greater Boston. Affiliated firms and individuals continue their independence but share marketing and other resources. NAI was last in Boston through an affiliation with Hunneman, but NAI and Hunneman parted ways because Hunneman wanted to have its own branding in 2018. (NAI still has affiliated firms in W
Hertz has improved upon its financial results from last year by cutting costs, so that they re better aligned with demand.
Over the past few months, Hertz s business has also improved markedly, as more Americans get vaccinated, making them more comfortable with travel, at least within the United States. This quarter we realized the first effects of the leisure travel rebound and capitalized on strong demand-driven pricing in destination markets that exceeded 2019 levels, said Paul Stone, Hertz Global s president and CEO, in a statement. We re continuing to see improved demand and are optimistic about a sustained recovery.
With that optimism, Hertz is working aggressively to replenish its fleet, despite the constraints of the global semiconductor shortage and its impact on the automotive supply chain, Stone said.