Hertz UK Receivables will no longer implement scheme of arrangement

By Sarah Lizee

Olympia, Wash., April 1 – Hertz UK Receivables Ltd. said it will not be implementing a scheme of arrangement for its outstanding €225 million 4 1/8% senior notes due 2021 (ISIN: XS1492665770) and outstanding €500 million 5˝% senior notes due 2023 (ISIN: XS1790929217).

Hertz’s U.S. and Canadian debtors under Chapter 11 proceedings filed a revised plan on March 30 following discussions with prospective plan sponsors. Because the plan does not envisage the U.S. debtors obtaining a U.S. guarantee bifurcation order, it is no longer possible to implement the scheme and the restructuring on the terms in the lock-up agreement.

Additionally, the amended plan proposes that the notes will be redeemed in full on the effective date of the plan, meaning that the amendments to the notes under the scheme are no longer required.

Hertz UK Receivables Ltd. intends to file a notice of discontinuance and discontinue the proceedings for the recognition of the scheme under Chapter 15.

Hertz Holdings Netherlands BV and Hertz UK Receivables have instructed the clearing systems to unblock the notes that were blocked in connection with voting on the scheme.

Hertz UK is an Uxbridge, England-based subsidiary of Hertz Global Holdings, Inc. 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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