🤑An "Active Auction" Breaks Out for Hertz🤑

Early Friday morning, The Wall Street Journal broke news* that the sponsors of Hertz Global Holdings Inc.’s ($HTZGQ) initial plan of reorganization — Knighthead Capital Management LLC and Certares Management LLC — had re-emerged with a fresh proposal for the company that would value the company at $6.2b, creating a dramatic delta between their valuation and the $5.3b valuation upon which the Hertz debtors had predicated their previous agreement with selected plan sponsors, Centerbridge Partners LP, Warburg Pincus LLC and Dundon Capital Partners LLC (the “PE Sponsors”). Adding credence to the proposal was the fact that it was backed by $2.5b in preferred equity financing from Apollo Global Management Inc. and joined by the ad hoc committee of equityholders led by Glenview Capital Management LLC and Hein Park Capital Management LP.

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