Investment firms Knighthead Capital Management and Certares Management submitted a sweetened offer to buy Hertz Global Holdings Inc. out of bankruptcy in a deal that could see equity investors recover $2.25 a share, Bloomberg News reported. Hertz will evaluate the proposal that assigns the rental-car company a more than $6.2 billion enterprise value to determine if it’s higher than one from its current reorganization sponsor, a group backed by Centerbridge Partners. 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 reorganized company. Hertz’s existing equity holders would receive 50 cents per share plus the chance to participate in either a boosted $1.3 billion rights offering or warrants for up to 10% of the reorganized company. Together, the cash and warrants would be worth around $2.25 a share.
