As Lordstown Motors officially files for bankruptcy, the company also filed a complaint against Foxconn.
What does the future hold for the ridesharing and delivery services marketplace post-bankruptcy?
HyreCar has entered into an agreement with Holmes Motors Inc. to provide $5 million in debtor-in-possession financing.
Hertz is in the process of paying out $19 billion to its creditors while reducing corporate debt by nearly 80%. Stock shares will continue to be publicly traded on the over-the-counter market.
Creditors to be paid in full and existing shareholders to receive more than $1 billion of value. Company on target for June 30 exit from Chapter 11.
Knighthead, Certares emerge as winners. Distribution of $8 a share “truly historic.” Stock soars 33%.
In a potentially rare outcome in a corporate bankruptcy, the revised plan if accepted will amount to a recovery of 60 to 70 cents a share for stockholders.
The new bid values Hertz at $6.2 billion and would pay unsecured bondholders in full.
Hertz chose the renegotiated proposal over a competing one from Certares and Knighthead Capital. The plan keeps Hertz on track to exit Chapter 11 in June.
The buyers, Knighthead Capital Management and Certares Management, would take at least a majority share and as much as 100% of the company. The proposed plan would pay in full all of Hertz's existing first- and second-lien debt and provide a 70% cash recovery to general unsecured creditors.
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