[ad_1]
Bidding war for failed car rental team Hertz the final match will see the bid of the private contestant in an auction where the contestants will go bankrupt in federal court on Monday.
A consortium led by Centerbridge Partners has stated that it will oppose a proposal filed by another group led by Knighthead Capital, which set the value of the Hhead company at $ 6.2 billion.
This amount would allow existing Hertz shareholders to receive an astonishing recovery valued at more than $ 2 per share. The struggle of the car rental company to travel and the recreational industries are recovering rapidly as vaccine rates rise and the U.S. economy takes off.
The coups negotiated between the two bidding groups began in March when Hertz approved Knighthead and its partner Certares Opportunities for the company at a value of only $ 4.8 billion. This offer was completed in April by the Centerbridge Group, which brings together Warburg Pincus and Dundon Capital Partners.
On Wednesday, the Hertz committee determined last week that Knighthead’s bid constituted a “high-profile proposal”. The tender procedures established by the bankruptcy court in Delaware have made it possible to launch the auction on Centerbridge on Monday.
The early offerings of both groups predicted that the new company would inherit the junior shareholders while eliminating the existing shareholders.
A group of hedge funds that accumulated shares in Hertz argued that the company’s valuation was high enough to support the minimal recovery of current shareholders. Since then, the group has teamed up with Knighthead / Certares to partner with Apollo Global Management to reorganize a $ 7 billion package to reorganize new debt and equity.
Their proposal offers a 50-cent cash back to current Hertz estate holders and allows them to purchase in the new Hertz estate through a rights offering or guarantees. The value of this package was approximately $ 2.25 per share, according to a person who knows the subject directly.
Shares of Hertz raised more than five dollars last summer using the Robinhood app with the strength of retailers. Experts, however, mocked the fact that as small creditors would receive less than 100 cents on a dollar restructuring, lower-level shareholders would have no right to acquire anything.
The Knighthead plan raises enough money to pay all creditors in full and pay the shareholders money. Hertz shares have risen to $ 3.48 this year from a low of 66 cents, surpassing the current $ 500 million capitalization.
The bankruptcy court will have to approve the winning bidder, after which the Hertz claimants will vote on the plan. The company is in a race to block a deal and get out of the Chapter 11 process in early July, at the start of the company’s busiest season.
Good conditions in the capital markets have enabled Hertz to fight fever.
“I can’t remember a better financing market,” said William Derrough, Hertz’s investment banker at Moertz and Hertz, in a testimony testified in court.
[ad_2]
Source link
