Hertz set to ride out of bankruptcy with $4.2 billion from investment firms

Two investment firms will buy a majority stake in Hertz Global Holdings Inc for $4.2 billion under a restructuring plan expected to help it out of bankruptcy by early- to mid-summer, the car rental company said in a filing on Tuesday.

Under the proposed investment, Knighthead Capital Management LLC and Certares Opportunities LLC will buy up to 100% of Hertz’s shares, with the funds expected to finance its U.S. vehicle fleet and slash corporate debt.

“We’ve been…repositioning our business as we prepare for increased travel demand as the pandemic subsides,” Chief Executive Paul Stone said.

The company said on Tuesday it filed a proposed plan of reorganization with the U.S. bankruptcy court for the district of Delaware, which is expected to approve the terms of the proposed investment at a hearing on April 16.