Shares of Hertz Global Holdings Inc. tumbled 9.9% in premarket trading, after the bankrupt car rental company said it received a revised proposal for its Chapter 11 exit from affiliates of Knighthead Capital Management LLC, Certares Opportunities LLC and Apollo Capital Management LP. The revised proposal includes funding of Hertz’s reorganization through a direct common stock investment of $2.9 billion, direct preferred stock investments of $1.5 billion and a rights offering to raise $1.36 billion. The proposal also includes payment in full of all funded debt, and provides current holders of common stock with 50 cents a share in cash and either 10-year warrants to a total of 10% of the reorganized company or the possibility to subscribe for common stock in the rights offering. “Hertz’s Board of Directors has not yet made any determination regarding the revised proposal and will evaluate it in accordance with the procedures established by the Bankruptcy Court,” the company said in a statement. The stock has rocketed 151.6% year to date through Monday, while the S&P 500 has gained 11.6%.
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