Hertz comes out of bankruptcy – CNN

As part of its bankruptcy filing last year, Hertz pledged to sell more than 180,000 vehicles from its fleet by the end of 2020, just as used car prices soar and Americans were facing a shortage of new cars.

Henry Keizer, chairman of the board of Hertz, called the takeover “remarkable”.

Hertz, which operates other brands including Thrifty and Dollar, was one of the first big companies to file for bankruptcy when the pandemic cut off virtually all travel last year. By the time he filed for Chapter 11 protection in May 2020, Hertz was already drowning in more than $ 18 billion in debt.

“In the face of the epic and unprecedented challenges presented by the Covid-19 pandemic, and unfazed by the first changes in leadership, we have remained focused on stabilizing the business and seizing opportunities to mitigate losses and create new value for our stakeholders, ”said Keizer.

Hertz received $ 5.9 billion in new equity from the company’s new investor group, led by Knighthead Capital Management and Certares Opportunities. The two investment firms agreed in March to buy Hertz and bring it out of bankruptcy.

Hertz said it reduced corporate debt by nearly 80%, or nearly $ 5 billion. Hertz has also “significantly improved its liquidity to fund operations and future growth.”

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