Get to know us. Our independent credit research, global market insights, covenant analysis and news help the world’s financial decision makers manage risk better.
Hertz: Make-Whole Settlement Offers Discussed
Mark Lightner, Esq. - Head of Special Situations Legal Research, CreditSights
Jory M. Eisenberg, CFA, FRM - Senior Analyst, Special Situations, CreditSights
Todd Duvick, CFA - Head of Autos, CreditSights
EXECUTIVE SUMMARY
- Hertz has disclosed the terms of competing proposals to settle its outstanding make-whole dispute, stemming from the decision of the U.S. Court of Appeals for the Third Circuit requiring Hertz to pay $270 million plus interest to its pre-bankruptcy noteholders.
- Hertz and the noteholders have proposed differing settlement terms, with a large gap in payment timelines, security, and priorities, reflecting concerns over Hertz’s creditworthiness and liquidity.
- Both proposals contemplate $341.1 million in settlement consideration, but Hertz’s proposal includes less upfront cash and $300 million in unsecured debt maturing in 2029, whereas noteholders seek a higher upfront payment and $272.9 million in secured debt maturing by the end of 2025.
- While settlement negotiations continue, the parties are also setting the stage for a litigation schedule in the bankruptcy court to resolve this dispute over the next several months.
Would you like access to the full report?
Receive a complimentary copy of Hertz: Make-Whole Settlement Offers Discussed
Award-Winning, Completely Unbiased Research
On the investment grade and high yield securities of issuers around the globe.
Select an article to download a free piece of research.
Filter
Vista Land: 6 Takeaways from Meeting with CFO
Vista Land: 6 Takeaways from Meeting with CFO
GLP: “Window Guidance” & Thoughts on Recent Events
GLP: “Window Guidance” & Thoughts on Recent Events
US IG & Lev Fin 2Q26 Outlook: TACO Trap
US IG & Lev Fin 2Q26 Outlook: TACO Trap
Asia Credit Best Ideas: April 2026
Asia Credit Best Ideas: April 2026
CR TrendLines Topical Report: Software New-Issue BSL Covenant Terms: Until the Past 6 Months Looser than the Broader Market
CR TrendLines Topical Report: Software New-Issue BSL Covenant Terms: Until the Past 6 Months Looser than the Broader Market
Our Products
CreditSights combines credit market research, covenant analysis and leveraged finance news into one site to help you Know More. Risk Better.
Covenant Review
The Undisputed Authority on Bond & Loan Covenants.
Bixby
Market-moving news and premier financial data on the private broadly syndicated loan market.
Risk Products
Monitor, manage and mitigate risk effectively within your portfolio with our range of risk solution tools.
Private Credit
Our solution offers clients a detailed understanding of loan terms, risks, and financial nuances.