{"id":194477,"date":"2021-03-04T23:19:40","date_gmt":"2021-03-04T20:19:40","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/lenders-mull-plan-to-take-hertz-public-post-bankruptcy\/"},"modified":"2021-03-04T23:19:40","modified_gmt":"2021-03-04T20:19:40","slug":"lenders-mull-plan-to-take-hertz-public-post-bankruptcy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/lenders-mull-plan-to-take-hertz-public-post-bankruptcy\/","title":{"rendered":"#Lenders mull plan to take Hertz public post-bankruptcy"},"content":{"rendered":"

“#Lenders mull plan to take Hertz public post-bankruptcy<\/strong>”
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There\u2019s a battle brewing over Hertz that could determine whether the car rental company \u2014 and original \u201cmeme stock\u201d \u2014 remains a publicly traded company, The Post has learned. <\/p>\n

Hertz on Tuesday proposed exiting bankruptcy by putting a group of new investors in the driver\u2019s seat, including Knighthead Capital Management, Certares Opportunities and Larry Fink\u2019s Blackrock. <\/p>\n

The investors have offered to spend between $2.3 billion and $4.2 billion for a controlling stake in Hertz, which would be privately held. <\/p>\n

But Hertz\u2019s unsecured lenders, a group that includes JPMorgan, Fidelity and hedge fund Pentwater Capital, are considering slamming the brakes on that plan in favor of their own proposal to pull the company out of bankruptcy via an initial public offering, sources said. <\/p>\n

The IPO plan, which has been submitted to Hertz but not yet to the bankruptcy court, calls for the unsecured lenders to convert their debt to stock and then \u201cimmedia<\/a>tely list\u201d the company on an exchange, a source close to the lenders told The Post. <\/p>\n

\u201cI think the process to sell the company has really just begun,\u201d this person said. \u201cOur group controls the vote. Anyone wanting to buy Hertz has to kiss our ring.\u201d<\/p>\n

Indeed, the unsecured lenders, a group that also includes Bank of America and Marathon Asset Management and AllianceBernstein, own more than 60 percent of the company\u2019s $4.6 billion in corporate debt, which sources say could make it hard for the Delaware bankruptcy judge to app<\/a>rove a sale over their objections. <\/p>\n

The lenders plan to push their IPO plan to the judge\u00a0unless the Knighthead deal is sweetened. It currently values Hertz\u2019s unsecured loans at around 70 cents on the dollar while making first- and second-lien lenders whole. <\/p>\n

Plans for a post-bankruptcy Hertz IPO come as small investors clamor to buy small cap stocks popular on trading forums like Reddit\u2019s WallStreetBets, or so-called \u201cmeme stocks.\u201d In fact, Hertz was one of the first stocks to benefit from chatter on Reddit after its sales got crushed by pandemic lockdowns \u2014 resulting in a buying frenzy that sent shares of the bankrupt company as high as $5.53 a share last year. <\/p>\n

Of course, current shareholders will be wiped out regardless of which plan wins the day, an outcome that is reflected in Hertz\u2019s stock price of 87 cents a share. <\/p>\n

The new investors looking to buy Hertz have been calling junior lenders individually in an effort to come to an agreement, sources said. But skeptical lenders have only to point to rival car maker Avis, which has doubled in price since October amid growing expectations that travel<\/a> will rebound as people get vaccinated against COVID-19, sources added.<\/p>\n

On Wednesday, the Hertz rival closed at a six-year high of $60.85 a share. <\/p>\n

\u201cThe price looks cheap relative to Avis,\u201d agreed Jefferies analyst Hamzah Mazari of the Knighthead deal, which values Hertz at just 6.5 times its pre-pandemic earnings. <\/p>\n

Avis, by contrast, is trading at 8.6 times its pre-COVID earnings. And Hertz on Tuesday estimated that revenue will rise from nearly $6.1 billion this year to $8.6 billion in 2023 as more people get vaccinated.<\/p>\n

\u201cThey are trying to steal the company,\u201d one junior lender source griped to The Post. \u201cThis seems value destructive. Imagine if a public company took an offer 14 percent below the trading price?\u201d\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#Lenders mull plan to take Hertz public post-bankruptcy” There\u2019s a battle brewing over Hertz that could determine whether the car rental company \u2014 and original \u201cmeme stock\u201d \u2014 remains a publicly traded company, The Post has learned. Hertz on Tuesday proposed exiting bankruptcy by putting a group of new investors in the driver\u2019s seat, including…<\/p>\n","protected":false},"author":1,"featured_media":194478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/03\/lenders-eye-hertz-buy.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[96147,4978,71070,71246,70792,70584],"class_list":["post-194477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-3-4-21","tag-bankruptcy","tag-hedge-funds","tag-hertz","tag-jpmorgan-chase","tag-mergers-acquisitions"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/194477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=194477"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/194477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/194478"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=194477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=194477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=194477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}