Hertz reorganization plan confirmed by bankruptcy court
ESTERO, Florida, June 10, 2021 / PRNewswire / – Hertz Global Holdings, Inc. (OTCPK: HTZGQ) (“Hertz” or the “Company”) today announced that the bankruptcy court has upheld the Company’s reorganization plan (the “Plan “). The Plan does not affect all categories of creditors (who are legally deemed to have accepted it) and was approved by over 97% of voting shareholders. Court approval paves the way for Hertz to exit Chapter 11 by the end of June 2021.
As a result of its restructuring efforts, Hertz will exit Chapter 11 with a significantly stronger balance sheet and greater financial flexibility than before the start of the COVID-19 pandemic, which forced Hertz to seek a Chapter 11 waiver in May 2020. Hertz’s plan will eliminate more than $ 5 billion in debt, including all of Hertz Europe’s corporate debt, and provide more than $ 2.2 billion overall liquidity to the reorganized Company. Hertz will also emerge with (i) a new $ 2.8 billion exit credit facility consisting of at least $ 1.3 billion term loans and a revolving credit facility, and (ii) approximately $ 7 billion asset-backed vehicle financing facility, each on favorable terms. The Plan provides for full cash payment to all creditors and existing shareholders to receive more than $ 1 billion valuable.
Pierre Pierre, President and CEO of Hertz, said: “With the approval of our plan by the Court today and a new group of committed investors, we are on the verge of exiting Chapter 11 by end of this month as a well-capitalized and even more competitive company, with the flexibility and resources to pursue exciting new growth opportunities. I would like to thank our employees and teams around the world for their hard work, which has enabled us to continue to take great care of our customers. As the demand for rental cars continues to increase, we look forward to helping our customers travel with confidence and safety when they get back on the road, and to successfully build on more than 100 years of service. Hertz’s history of quality service as one of the world’s best-known brands. ”
For court documents or filings, please visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421. White & Case LLP acts as legal advisor, Moelis & Co. as investment banker and FTI Consulting as financial advisor.
The Hertz Corporation, a subsidiary of Hertz Global Holdings, Inc., operates the Hertz, Dollar and Thrifty vehicle rental brands through North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand. Hertz Corporation is one of the largest car rental companies in the world and the Hertz brand is one of the most recognized in the world. In addition, The Hertz Corporation operates the Firefly car rental brand and Hertz 24/7 carsharing business in international markets and sells vehicles through Hertz Car Sales. For more information on The Hertz Corporation, visit www.hertz.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of federal securities laws. Words such as “expect” and “intend” and similar expressions identify forward-looking statements, which include, but are not limited to, statements relating to our liquidity and potential sources of funding; the bankruptcy process; our ability to obtain bankruptcy court approval with respect to petitions or other requests made in bankruptcy court throughout Chapter 11 matters; the effects of Chapter 11 on the interests of the various constituents; and the ability to negotiate, develop, confirm and implement a reorganization plan. We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties that we may not be able to predict or assess with precision, including those of our risk factors as we identify in our most recent annual report on Form 10-K for the year ended December 31, 2020, as filed with the Securities and Exchange Commission on February 26, 2021, and any related updates in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we assume no obligation to update any such information.
SOURCE Hertz Global Holdings, Inc.