Hertz Global disclosure statement draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., April 13 – Hertz Global Holdings, Inc.’s disclosure statement for its Chapter 11 plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware

Vara said that under the plan, voting class members will be deemed to have released certain third parties unless they vote to reject the plan and on that same ballot “opt-out” of the third-party release, or they do not vote on the plan but still return the ballot on which they have checked the “opt-out” box.

“Some decisions in this district have held that third-party releases of non-debtors should be allowed only to the extent the releasing parties have given affirmative consent,” Vara said.

The U.S. trustee said he chose to raise the issue now so the debtors may resolve the situation by changing the opt-out portion of their ballots to an opt-in form.

“Doing so will ensure that only those claimants who actually receive the forms and actually consent to give third-party releases, will be deemed to provide the same,” Vara said.

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy on May 22, 2020. The case number is 20-11218.

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