Hertz Global Holdings Inc (OTCMKTS:HTZGQ) stock gains further momentum in the last few minutes and now up by 42% at $5.23 as the company selects a $6 bln proposal from Knighthead, Certares, and Apollo to fund exit from Chapter 11.
Hertz Global 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, Certares Opportunities, and Apollo Capital Management (together, 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 modifications to the Plan and solicitation procedures, are subject to the approval of the Bankruptcy Court at a hearing scheduled for May 14.
Under the revised proposal, Hertz’s Chapter 11 plan will be funded through direct common stock investments from the KHCA Group and certain co-investors aggregating $2.781 bln, the issuance of $1.5 bln of new preferred stock to Apollo, and a fully backstopped rights offering to the company’s existing shareholders to purchase $1.635 bln of additional common stock. The revised Plan would provide for the payment in cash in full of all administrative, priority, secured, and unsecured claims in the Chapter 11 cases.
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