Hertz, second-lien noteholders resolve objections to Chapter 11 plan

By Sarah Lizee

Olympia, Wash., June 9 – Objections to Hertz Global Holdings, Inc.’s Chapter 11 plan from second-lien note trustee BOKF, NA and an informal group of second-lien noteholders have been resolved, according to a statement filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The noteholders and trustee said that since filing their objections, they have worked with Hertz to consensually resolve the issues raised in the objections.

The parties reached an agreement in principle that will resolve the objections and ensure that holders of second-lien note claims are unimpaired by providing for indefeasible payment of principal, accrued interest and post-petition interest at the contract rate under section 506(b) through the date of payment, not subject to turnover or adjustment.

The agreement also provides for resolution of all possible disputes and claims under the intercreditor agreement, compliance with the second-lien note documents as required by the bankruptcy code, including the survival of required provisions and exculpation, mutual releases among the second-lien parties and the debtors, reduction of certain costs incurred by the trustee, and finality and closure on the effective date that will avoid post-confirmation uncertainty and litigation.

The agreement in principle remains subject to final documentation.

A court hearing to confirm Hertz’s plan of reorganization is scheduled for June 10.

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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