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Hertz secures approval of bid, auction procedures for plan proposals
By Sarah Lizee
Olympia, Wash., April 29 – Hertz Global Holdings, Inc. obtained court approval of bid and auction procedures relating to the submission of alternative plan proposals, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
As reported last week, the company received court approval of the disclosure statement for its fourth amended Chapter 11 plan after receiving enhanced proposals from both its current plan sponsors, Warburg Pincus LLC, Centerbridge Partners LP and Dundon Capital Partners LLC, and previous plan sponsors, Knighthead Capital Management, LLC and Certares Opportunities LLC.
While Hertz said in its fourth amended disclosure statement that it has concluded that Warburg, Centerbridge and Dundon’s proposal is the highest and best proposal currently available, it may seek confirmation of a modified plan that embodies a different restructuring proposal with other sponsors.
Hertz asked the court to approve procedures that will provide Knighthead and Certares with a full and fair opportunity to present an enhanced proposal, and if necessary, provide Warburg, Centerbridge and Dundon with an opportunity to counter that proposal at the auction, while also assuring that the debtors will meet their goal of emerging by the end of June.
Knighthead and Certares would have until 5 p.m. ET on May 2 to submit an enhanced proposal to the debtors. Warburg, Centerbridge and Dundon would then have three business days to decide if they want to counter the offer. If so, an auction would be held on May 10.
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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