(Reuters) – Hertz Global Holdings Inc said on Wednesday a revised offer from Knighthead Capital, Certares and Apollo Global to fund the car rental company’s exit from bankruptcy protection was a superior proposal.
The offer aims to fund the exit through direct common stock investment of $2.9 billion, preferred stock worth $1.5 billion and a $1.36 billion rights offering.
The new offer rivals a bid backed by Centerbridge Partners, Warburg Pincus and Dundon Capital Partners, the three private investment firms that are providing equity capital to fund for Hertz’s exit from bankruptcy.
The car rental firm said it will proceed to an auction if the Centerbridge group informs the company by May 7 of its intention to make a counteroffer.
Saddled with $19 billion in debt, Hertz filed for bankruptcy protection in May last year as travel demand sank during the pandemic and talks with creditors failed to provide a much-needed relief.
