Insolvency RecordCASE FILES

United States ยท Car rental

The Hertz Corporation and Hertz Global Holdings, Inc. insolvency: proceedings and outcome

Hertz, a US car rental company, filed for Chapter 11 in the US Bankruptcy Court for the District of Delaware on 22 May 2020 after a sharp fall in travel demand during the COVID-19 pandemic. The court confirmed its plan of reorganization on 10 June 2021, under which unsecured and second lien noteholders were to be paid in full in cash and existing shareholders were to receive a distribution. The plan became effective on 30 June 2021, funded by new equity from plan sponsors and preferred stock issued to Apollo.

Emerged from proceedings Hertz emerged on 30 June 2021 with 471,102,514 new common shares, 1.5 million preferred shares issued to Apollo and its designees, and new exit financing including 1.3 billion USD of term B loans and a 1.255 billion USD revolving facility.1

First filing22 May 2020
Proceedings1

No verified liability total captured from fetched filings.1

Proceedings

TypeCourt or bodyCaseFiled
Chapter 111,2US Bankruptcy Court for the District of Delaware, United States (Delaware)20-11218 (MFW)22 May 2020

Timeline

  1. The Hertz Corporation and affiliated debtors filed Chapter 11 petitions in Delaware.1,3
  2. Hertz announced plans to raise up to 1 billion USD of new equity during the bankruptcy, warning the stock could ultimately be worthless. It sold 29 million USD of stock before the SEC intervened.3
  3. The New York Stock Exchange delisted Hertz stock.3
  4. The bankruptcy court entered the order confirming the Second Modified Third Amended Joint Chapter 11 Plan of Reorganization.1,2
  5. The plan became effective and Hertz emerged from Chapter 11.1

Creditor recovery

Under the confirmed plan, holders of unsecured notes, second lien notes and 7.000% unsecured promissory notes were to be paid in full in cash with interest, and existing common shareholders received cash, new shares, subscription rights and/or warrants.2

Sources

  1. US Securities and Exchange Commission (EDGAR), Hertz Global Holdings, Inc. Form 8-K (plan effective date) (7 July 2021)
  2. US Securities and Exchange Commission (EDGAR), Hertz Global Holdings, Inc. Form 8-K Exhibit 99.1 (order confirming plan of reorganization) (16 June 2021)
  3. Wikipedia, Hertz Global Holdings (27 October 2026)