The quest for control of Hertz Global Holdings is not over just yet. Knighthead Capital Management and Certares Management, one of two final bidders that had been spurned for the Centerbridge group offer, returned with a counteroffer on Thursday.
The new bid values Hertz at $6.2 billion, versus the Centerbridge valuation of $5.5 billion. The new proposal has backing from Apollo Global Management, which agreed to provide $2.5 billion in preferred equity financing for the proposed restructuring.
Unlike prior offers, this offer would pay unsecured bondholders in full and offer existing shareholders equity in the reorganized company, according to the Wall Street Journal. The previous plan called for the exchange of unsecured debt claims against Hertz for 48.2% of the equity in the reorganized company and the right to purchase an additional $1.6 billion of shares.
Hertz has said it is on track to exit bankruptcy in June.