Hertz seeks court approval to sell some assets to GSP Transportation

By Sarah Lizee

Olympia, Wash., April 26 – Hertz Global Holdings, Inc. is seeking court approval to sell some assets in connection with the divestiture of its Tennessee, Georgia and Carolinas operations to GSP Transportation, Inc., according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Last fall, the debtors began a marketing process to solicit offers for the purchase of some of their locations to be operated as franchises. Through their motion, the debtors seek to sell to GSP 15 airport locations, 34 fixed base operator locations, 36 off-airport locations and some other vehicle maintenance servicing locations.

GSP, a long-time franchisee of the debtors, has agreed to enter into new franchise agreements covering both to-be-acquired locations as well as GSP’s existing locations, bringing royalty rates at those existing locations up to the prevailing rate.

Additionally, the transaction will result in a $5 million cash payment to the debtors in three installments, the purchase of some of the fleet associated with the locations at market rates, and the purchase of facilities and equipment at the locations at debtors’ net book value.

A hearing is scheduled for May 18.

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy on May 22, 2020. The case number is 20-11218.

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