Hertz Global Holdings has completed its Chapter 11 restructuring process, the car rental company announced Wednesday.
Hertz's Chapter 11 exit plan was approved by a U.S. bankruptcy court on June 10. Hertz filed for bankruptcy in May 2020.
Among the plan's features, Hertz will eliminate over $5 billion of debt, including all of Hertz Europe's corporate debt. Hertz also will receive more than $2.2 billion of global liquidity and emerge with a $2.8 billion line of credit consisting of at least $1.3 billion of term loans and a revolving loan facility, and an approximately $7 billion asset-backed vehicle financing facility, both "on favorable terms," the company said in a statement.
Hertz also now has a new board of directors, effective June 30. Among the board's initial eight members are Hertz president and CEO Paul Stone and representatives from Knighthead Capital Management, Certares Opportunities and Apollo Capital Management, the restructuring plan's sponsors. The board chairman will be American Express Global Business Travel board chairman and Certares founder and senior managing director Greg O'Hara.
The board may add up to three new members.