New York — Investment firms Knighthead Capital Management and Certares Management submitted a sweetened offer to buy Hertz Global Holdings out of bankruptcy in a deal that could see equity investors recover $2.25 a share.
The bid includes fully committed debt and equity financing, the people said. Hertz bondholders would be paid in full while shareholders get the chance to own a bigger portion of the reorganised company. Hertz shares jumped as much as 14% to $2.57 on Monday morning in New York after Bloomberg reported on the boosted offer.
The battle over ownership of Hertz has been heating up amid surging demand for travel in the US. In April, the company picked a plan from Centerbridge, Warburg Pincus and Dundon Capital Partners that outbid an earlier Knighthead deal. Both groups have since revised their plans. If the Knighthead bid meets Hertz’s qualifications, an auction may be held on May 10 to determine the best bid.