NuVinAir is looking to make inroads within the rental car market with its newest product.
The company that offers a suite of patented and proprietary products that safely can create healthy vehicle interiors, last week announced the upcoming launch of NuVinAir ReTurn, a product designed so rental car companies can more effectively preserve their fleet and boost customer satisfaction.
According to a news release, the new offering will be available nationwide starting Sept. 1.
The latest data from Cox Automotive indicated that average mileage for rental risk units passing through the wholesale market during the first half of August stood at 57,988 miles. NuVinAir is looking to provide better solutions, so rental car companies can preserve their vehicles as the miles accrue.
NuVinAir created ReTurn to allow national rental partners to treat a broader range of vehicles for mild to mid-range odor through its patented technology.
“Fast and cost-effective, ReTurn is exclusively formulated for our national rental-car partners and quickly gets vehicles back on the road with a clean, healthy interior that customers will appreciate — and already demand,” NuVinAir chief executive officer and founding partner Kyle Bailey said in the news release.
“We consult with automotive businesses to maximize customer experience, operational efficiency, safety and profitability,” Bailey continued. “Our new proprietary product is one of the best ways to boost customer-satisfaction scores and improve operational efficiency to achieve the pinnacle of rental renewal in minutes — and the untapped opportunity is exponential.”
Among NuVinAir’s other proprietary product offerings is its autonomous Cyclone treatment.
The Cyclone is used with ReTurn, ReFresh and ReStore to freshen a vehicle’s interior, as well as eliminate odor in an attempt to make the vehicle in like-new condition.
Rounding out NuVinAir’s product portfolio, ReKlenz-X is a high-performance stain remover and an EPA-approved, eco-friendly disinfectant that can kill 99.9% of germs, bacteria and viruses on vehicle surfaces.
As part of its product portfolio, ReNuSurface is an eco-friendly, all-in-one cleaner that can replace multiple products and saves on supply costs.
Recently, NuVinAir announced the company’s expansion of its franchise program to 33 states, with more than one-third of them being added this year alone.
Hertz is charging up its systems to handle a growing number of electric vehicles in its rental fleet by going to the cloud.
On Monday, Hertz announced a collaboration with Amazon Web Services (AWS) to modernize and digitize the Hertz customer experience and key components of its new mobility platform, including enhanced data analytics and vehicle telematics capabilities.
Management explained through a news release that the continued investment in cloud services is part of Hertz’s ongoing commitment to lead in electrification, shared mobility and a digital-first customer experience.
“Tapping the power of the cloud will materially increase our ability to provide better tools to our business in order to serve our global customers,” Hertz executive vice president and chief information officer Tim Langley-Hawthorne said in the news release.
“Working with AWS, and its unparalleled experience in the automotive sector, enables Hertz to deliver a best-in-class, digitally led customer experience and accelerate our technology modernization by leveraging a robust suite of services to drive innovation and agility across the enterprise,” Langley-Hawthorne continued.
Hertz highlighted that its work with AWS will help the company create the future car rental experience that is all-digital and EV-centric.
Hertz said it will leverage AWS to scale the technology that will support its investment in one of the largest electric vehicle rental fleets in North America and one of the largest in the world, including the buildout of its global charging infrastructure.
Executives pointed out that AWS technologies also will help Hertz enhance the customer experience by powering its vehicle telematics platform, which provides vehicle diagnostics data to facilitate better fleet management and support new customer products. These products will further enable a touchless car rental experience with contactless vehicle pickups and returns via the Hertz mobile app.
Additionally, Hertz noted that it will look to accelerate its cloud strategy and transition core infrastructure components from on-premises data centers to AWS. This will support its all-digital strategy and expand its use of services, including the AWS Marketplace, which will provide access to a variety of software and integrated technologies that will support many of the company’s strategic IT priorities.
“AWS is helping Hertz to develop new seamless customer experiences, leverage its electric vehicle fleet, and build and scale its global electric vehicle charging infrastructure,” said Greg Pearson, vice president of worldwide commercial sales at AWS.
“By accelerating its cloud migration and adopting AWS analytics and machine learning capabilities, Hertz can unlock the power of customer and fleet data to build personalized, connected vehicle solutions that will improve the overall driver experience, maximize its existing operations and integrate more sustainable electric vehicles and future mobility options into its operations,” Pearson went on to say.
Global mobility and provider SIXT has expanded its U.S. presence on the East Coast with a move announced Tuesday, adding Baltimore and Charlotte, N.C., branches.
Specifically, SIXT opened a location at the Charlotte Douglas International Airport last week as well as recently opening a location at the Baltimore/Washington International Thurgood Marshall Airport.
At the end of 2021, SIXT opened airport locations at Cincinnati/Northern Kentucky International Airport, Albuquerque International Sunport Airport and Portland International Airport.
The company also doubled its presence at the Tampa International Airport.
SIXT said that as of the beginning of this year, it has a presence at 28 of the top 30 U.S. airports.
SIXT USA has 100 rental locations in 22 states and employees more than 1,200 people. SIXT launched its first U.S. brand in 2011 and is now the fourth largest rental car company in the country, SIXT said.
“As travel continues to boom, we are growing SIXT USA’s presence across the East Coast to offer consumers premium rentals at affordable prices, at these major hubs,” SIXT president and chief operating officer Michael Meissner said in a news release. “Charlotte and Baltimore have so much to offer, from their culinary scenes to the incredible festivals they host, and we’re thrilled to equip visitors with the best vehicles to enhance their experiences while exploring these destinations.”
Zubie has launched a new fleet vehicle valuation tool with the Fleet Consulting Association that will be added to the company’s Rental Connect platform and help rental companies determine if it’s time to retail or wholesale vehicles in their fleet.
Rental operators will be able to use the Zubie Vehicle Valuation platform to access detailed reporting on the value of both individual vehicles within their fleet and their entire fleet.
“Zubie’s vehicle valuation tool takes the guesswork out of buying and selling vehicles for your fleet,” Zubie chief revenue officer Mark Novak said in a news release.
“It’s going to help rental operators maximize their profit by optimizing the timing to sell its vehicles in the used-vehicle market or to wholesalers.”
Zubie uses its connected car platform to decipher a car’s VIN, model/color, DTC codes, odometer reading and where it has been driven.
That data is run through valuation software powered by multiple sources. Zubie then sends a report back to the user, who can then see what the vehicle’s value is and what they could potentially earn by selling.
Zubie said in the release the platform is designed to answer these questions:
What is the value vs debt ratio of my fleet?
Is it worth selling a vehicle today?
Should I retain a vehicle and continue to generate rental revenue from it?
Fleet Consulting Association chief executive officer Roger Zakharia said in the release: “With Vehicle Valuation, fleet operators are better equipped to maximize their assets and reduce their liabilities.”
Enterprise Holdings is making quite a financial commitment to addressing social and racial equity gaps facing youth and families in communities across the globe.
Through the Enterprise Holdings Foundation, the company that operates the Enterprise, National and Alamo rental car brands is awarding its inaugural local Enterprise Holdings ROAD Forward grants to nearly 700 nonprofit organizations.
According to a news release, the grants total more than $7 million.
The company highlighted that this announcement is another step in the ROAD Forward initiative to allocate $35 million over five years to more than 70 global Enterprise operating teams to drive local impact, as part of its five-year, $55 million commitment.
The company explained the grant program empowers Enterprise Holdings’ more than 80,000 employees to take the lead on identifying local organizations best equipped to drive change in their own communities, across three key areas:
— Early childhood development
— Youth health and wellness
— Career and college preparation
“A commitment to the communities where we operate has been fundamental to our company since its founding in 1957,” Enterprise Holdings Foundation president Carolyn Kindle Betz said in the news release.
“ROAD Forward’s local grants will support the many outstanding organizations that are leading efforts to advance equity in their communities — and ultimately strengthen the areas where our employees live and work, one neighborhood at a time,” Kindle Betz continued.
Notable recipients of the grants, nominated by Enterprise employees, include:
— Brotherhood Crusade, a 50-year-old grassroots organization working to improve quality of life and serve unmet needs of low-income, underserved, underrepresented and disenfranchised individuals in South Los Angeles, including health disparities and poverty-associated public health conditions. The nonprofit has provided human and social services to more than 100,000 South Los Angeles residents.
— Young Men United, a nonprofit in Baltimore with a mission to close gaps in racial education and earning by helping 25,000 young men of color over 10 years to increase post-secondary attainment and workforce preparedness. The organization provides participants with mentoring opportunities, guidance throughout the college search and application process, financial and educational support, and internships and job experiences.
— Youth Opportunities Unlimited, an organization based in Cleveland focused on helping local youth become economically self-sufficient through mentorship, skills and credentials training, career exploration, and internship and job searches. Since its founding nearly 40 years ago, the nonprofit has helped more than 160,000 teens and young adults obtain jobs and internships.
More than 60 of the local grants will support renowned nonprofit organizations and communities where the company operates in Europe. This includes support of 17 national organizations across the continent, such as National Literacy Trust (U.K.), The Girls’ Network (U.K.), Children’s Books Ireland (Ireland), Children for a better World e.V. (Germany), Sport dans la Ville (France) and Fundación MAPFRE (Spain), among others.
Enterprise Holdings first announced the ROAD Forward commitment in November. The initiative focuses on respect, opportunity, achievement and diversity (ROAD) for youth and families in the three previously mentioned areas:
—Early childhood development: The foundation for future success is built on access to preschool, pre-K, kindergarten and other opportunities for introducing learning and literacy.
“We believe in laying the building blocks of empowerment through early development and education to generate enthusiasm for life-long learning,” company officials said.
—Youth health and wellness: Health disparities are unfortunate symptoms of racial and socioeconomic inequality.
“We’re supporting the creation of opportunities to engage in positive behaviors that nurture physical and mental well-being,” company officials said. “This enables self-sufficiency and closes the gap in healthy outcomes among our youth.”
—Career and college preparation: The transition from childhood to adulthood is a crucial time for establishing a productive and healthy life.
“We’re investing in programs and organizations that provide college admissions and financial aid guidance, exposure and access to employers, career development coaching, skills training and interview preparation,” company officials said. “Equal access to these critical resources promotes long-term financial stability and mobility.”
In addition to $35 million in local-market grants, the commitment includes $20 million across four renowned nonprofit organizations — The Obama Foundation’s My Brother’s Keeper Alliance, UNCF, Girls Inc. and Parents as Teachers — to support young people in underserved communities.
“ROAD Forward demonstrates our commitment to diversity, equity and inclusion in our communities,” Enterprise Holdings chief diversity officer Errin Braddock said. “This is a companywide priority, and through this initiative, as well as efforts inside our own walls, we are doing the work that is necessary to help our communities advance lasting change.”
In conjunction with the ROAD Forward initiative, the company highlighted its foundation invested an additional $40 million in November into Enterprise Fill Your Tank, a six-year, $60 million program launched in 2016 to address food insecurity.
The additional investment will extend the program for another four years with funds being distributed among food banks and charities throughout North America and Europe, according to Enterprise Holdings.
For more information about Enterprise Holdings’ philanthropic initiatives, visit this website.
It might be hard to begrudge Hertz Global Holdings executives and new board members if they shot off some fireworks ahead of the Fourth of July holiday.
This week, Hertz announced that it has successfully completed its Chapter 11 restructuring process and has emerged as a “financially and operationally stronger company that is well-positioned for the future,” as a new eight-member board takes over leadership.
The company said its reorganization plan was confirmed by the federal bankruptcy court on June 10, 2021. In doing so, Hertz highlighted in a news release that Judge Mary Walrath described the outcome as a “fantastic result” that “surpasses any result that I’ve seen in any Chapter 11 case that I’ve faced in my 20-plus years.”
With more than $5.9 billion of new equity capital being provided by Hertz’s new investor group led by Knighthead Capital Management, Certares Opportunities and certain funds managed by affiliates of Apollo Capital Management, Hertz highlighted that it has reduced its corporate debt by nearly 80% and significantly enhanced its liquidity to fund operations and future growth.
Specifically, Hertz said it has eliminated nearly $5.0 billion of debt, including all of Hertz Europe’s corporate debt.
In addition, Hertz said it has emerged with a new $2.8 billion exit credit facility (including an undrawn $1.3 billion revolving credit facility) and a $7.0 billion asset-backed vehicle financing facility, each having terms the company views as “extremely favorable.”
The aggregate interest rate on the company’s new ABS financing is less than 2.0%, according to the news release.
Henry Keizer, chairman of Hertz’s outgoing board of directors, offered this assessment of the rental-car company’s journey to this point.
“Faced with the epic and unprecedented challenges presented by the COVID-19 pandemic, and unfazed by early leadership changes, we stayed focused on stabilizing the business and seizing opportunities to mitigate losses and create value for our stakeholders,” Keizer said in the news release.
“When the economy began to show signs of recovery earlier this year, we were perfectly positioned to drive a competitive process that would maximize recoveries. The result — paying our nearly $19 billion of creditors in full and returning substantial value to our shareholders — is remarkable,” he went on to say.
In tandem with its financial restructuring, Hertz recapped that it also executed on a series of operational initiatives to create a “more focused and profitable enterprise.”
Among these actions, Hertz noted that it:
— Launched a cost-reduction program that is generating significant savings
— Right-sized its fleet across both its U.S. and international businesses
— Optimized its location footprint
— Negotiated cost reductions and concessions at certain airport locations
— Completed the sale of its Donlen fleet leasing business for $891 million in cash.
In addition, Hertz went on to mention that it focused on meeting changing demand through its portfolio of neighborhood rental locations as a complement to its airport business.
These efforts, combined with a sharp increase in car rentals in the U.S. and the continued strength in used-vehicle sales, are putting the company on track for strong financial results in 2021, according to Hertz president and chief executive officer Paul Stone.
“Today marks a significant milestone in Hertz’s 103-year history,” Stone said in the news release distributed on Wednesday. “Through the relentless efforts of our board and team, we are moving forward in an incredibly strong position with an exciting road ahead of us.
“Now with a solid financial foundation, a leaner, more efficient operating model, and ample liquidity to invest in our business, Hertz has outstanding potential to drive long-term profitable growth,” he continued. “Both in the U.S. and around the world, we are poised to capitalize on our industry leadership, deep operational expertise and iconic global brand.
“I am tremendously proud of all we have accomplished and confident that this is only the beginning in delivering even greater value to our stakeholders,” Stone went on to say. “Thank you to the Hertz team around the world and board of directors, to our new investor group, who bring extensive industry experience, and to our customers, franchisees, partners and shareholders for your confidence and support during this process.
“We look forward to a bright future as a vibrant part of the rebounding travel industry and as a trusted partner for our customers’ mobility needs,” he added.
Hertz filed for Chapter 11 for its U.S. operations on May 22, 2020 following the onset of the COVID-19 pandemic, which had a severe and dramatic effect on travel demand.
Hertz pointed out that its principal international operating regions including Europe, Australia and New Zealand were not included in the U.S. Chapter 11 proceedings.
Following its successful restructuring process, Hertz said its creditors will receive payment in cash in full and existing shareholders will receive more than $1 billion of value.
The company indicated shares of Hertz common stock will continue to be publicly traded on the over-the-counter (OTC) market, until such time as the company relists on a national securities exchange.
Effective Thursday, the new ticker symbols are HTZZ for Hertz common stock and HTZZW for warrants.
White & Case LLP is serving as legal advisor, Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor.
For court documents or filings, visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421.
Hertz forms new board of directors
Now with the bankruptcy exit completed, Hertz also highlighted its new eight-member board of directors with up to three additional directors to be named in the future. Along with Stone, the group currently includes:
— Certares founder Michael Gregory O’Hara, who was tapped as chairperson
— Knighthead Capital co-founder Thomas Wagner, who was chosen as vice chairperson
— Certares senior managing director Colin Farmer
— Knighthead Partner Andrew Shannahan
— Apollo partner Christopher Lahoud
— TPG Capital senior advisor and former CEO of Ford Mark Fields
—Previous Hertz board member Vincent Intrieri
“We are excited to welcome our new board members and benefit from their collective expertise, leadership and oversight at this pivotal time for Hertz and the travel industry,” Stone said in a separate news release. “These executives bring extensive financial, operational and market experience that will be invaluable in the next chapter for Hertz.
“I also want to express our company’s appreciation to our retiring board members for their service and tireless efforts, particularly throughout the past year and a half of the pandemic and our successful restructuring,” Stone added.
Delayed for about a year because of the pandemic, Hertz’s effort to help the Jack & Jill Late Stage Cancer Foundation (JAJF) came to fruition.
On Friday, Hertz announced that the donation of its 2020 Hertz-Hendrick Motorsports Camaro ZL1 has raised $250,000 for JAJF. Hertz donated the No. 1 production model of only 24 limited-edition custom Camaros that it commissioned to JAJF, which was auctioned off at the Barrett-Jackson LIVE Las Vegas Auction on June 19.
According to a news release, Brenda and Rick Nielsen purchased the Camaro and the proceeds will help JAJF continue its mission since 2006 to treat families who have a parent diagnosed with terminal cancer to oncologist prescribed timeouts together known as WOW Experiences.
“Hertz is thrilled our donation of the Hertz-Hendrick Motorsports Camaro ZL1 yielded such amazing results for the Jack & Jill Late Stage Cancer Foundation, with whom we’ve partnered for several years,” Hertz executive vice president of sales, marketing and customer experience Laura Smith said in the news release.
“At Hertz, we love helping people travel and make memories, so it’s an honor to support our partnership with this donation along with the in-kind rental cars we provide that help families facing unimaginable circumstances get away and spend time together,” Smith continued.
Last summer, Hertz donated the Hertz-Hendrick Motorsports Camaro ZL1 to JAJF, but the Foundation had to delay its plans to auction off the vehicle due to the pandemic. Fortunately, the delay evidently did not curb interest.
Hertz said the Barrett-Jackson auction delivered “impressive” results that exceeded JAJF’s expectations.
“We are so thankful to Hertz and their continued partnership,” said Jon Albert, founder and president of the Jack & Jill Late Stage Cancer Foundation. “Our organization will never be bashful on behalf of these children who are losing their young moms and dads at such a vulnerable time.
“The investment that Hertz made and now the investment that Brenda and Rick Nielsen have made in us is a legacy. This will help sustain the Foundation and bring mores smiles and joy to families who are tragically touched by cancer,” Albert continued.
Hertz, which has a history of providing custom high-performance vehicles for rent, introduced the 2020 Hertz-Hendrick Motorsports Camaro ZL1 as part of its fleet in 2019.
The custom Camaro ZL1 is outfitted with a 6.2 liter V8 engine and a roaring 750 horsepower, with features including a larger Callaway Supercharger; custom Hertz wheels; custom Hertz lighted door sill plates; embroidered headrests; Hertz fender badges; and a custom plaque denoting the model number.
And proceeds from the auction now are with the charity thanks to another individual impacted by cancer.
“I am overjoyed and blessed to be able to contribute to this remarkable foundation,” said Brenda Nielsen, buyer of the 2020 Hertz-Hendrick Motorsports Camaro ZL1. “As a cancer survivor, the opportunity to support families affected by cancer means the world to me.”
Hertz Global Holdings reached a significant achievement on Thursday, as the company rebounds from pandemic challenges.
Hertz announced that a federal bankruptcy court confirmed the company’s plan of reorganization. According to a news release, the plan unimpairs all classes of creditors — who are legally deemed to have accepted it — and was approved by more than 97% of voting shareholders.
Hertz said the court’s approval clears the way for the company to emerge from Chapter 11 by the end of the month.
As a result of its restructuring efforts, Hertz said it will emerge from Chapter 11 with a “substantially stronger” balance sheet and greater financial flexibility than it had prior to the onset of the COVID-19 pandemic, which forced Hertz to file for Chapter 11 relief last May.
Hertz explained its plan will eliminate over $5 billion of debt, including all of Hertz Europe’s corporate debt, and will provide more than $2.2 billion of global liquidity to the reorganized company.
Hertz also noted that it will emerge with:
— A new $2.8 billion exit credit facility consisting of at least $1.3 billion of term loans and a revolving loan facility
— Approximately $7 billion of asset-backed vehicle financing facility
The company mentioned each facility contains “favorable” terms.
Hertz went on to mention its plan provides for the payment in cash in full to all creditors and for existing shareholders to receive more than $1 billion of value.
“With the court’s approval of our plan today and a committed new investor group, we are poised to exit Chapter 11 by the end of this month as a well-capitalized and even more competitive company, with the flexibility and resources to pursue exciting new growth opportunities,” Hertz president and chief executive officer Paul Stone said in the news release.
“I want to thank our employees and teams around the world for their hard work, which has enabled us to continue taking great care of our customers,” Stone continued. “As the demand for rental cars continues to rise, we look forward to helping our customers travel confidently and safely as they get back out on the road, and to successfully building on Hertz’s more than 100-year history of quality service as one of the world’s best-known brands.”
White & Case LLP is serving as legal advisor. Moelis & Co. is serving as investment banker, and FTI Consulting is serving as financial advisor.
To obtain court documents or filings, visit https://restructuring.primeclerk.com/hertz or call (877) 428-4661 or (929) 955-3421.
The pandemic certainly impacted Hertz Global Holdings as much as any company with a connection to vehicles.
But the company shared several positive developments in recent days, including the closing of its Donlen sale, more than $1 billion in first quarter revenue as well as how its exit from Chapter 11 bankruptcy will be funded.
First on Friday, Hertz reported results for its first quarter with revenue of $1.3 billion, net income attributable to the company of $190 million and adjusted corporate EBITDA of $2 million.
According to a news release, Hertz said its liquidity at the end of Q1 was $1.1 billion.
“This quarter we realized the first effects of the leisure travel rebound and capitalized on strong demand-driven pricing in destination markets that exceeded 2019 levels,” Hertz president and chief executive officer Paul Stone said.
“We’re continuing to see improved demand and are optimistic about a sustained recovery,” Stone continued. We’re actively replenishing our fleet, despite the constraints of the global semiconductor shortage and its impact on the automotive supply chain.
“Most importantly, I’m exceptionally proud of our employees who are working tirelessly to serve our customers as they’re ready to be on the road again,” he added.
During the quarter, Hertz said it closed on the sale of substantially all of the assets of its Donlen vehicle leasing and fleet management business to Athene Holding for $891 million in cash proceeds, subject to certain adjustments.
“Notably, we are also making great progress towards concluding the bankruptcy process,” Stone said. “We are actively engaged with potential plan sponsor groups which we anticipate will deliver a robust recovery for creditors and shareholders. We remain on track to emerge in June and are poised to do so with more efficient operations and a stronger balance sheet for the future.”
The next step in that bankruptcy process arrived on Wednesday when Hertz announced a decision following the completion of the auction previously approved by the U.S. bankruptcy court in its Chapter 11 case.
According to another news release, Hertz has selected and approved a revised proposal from certain funds and accounts managed by affiliates of each of Knighthead Capital Management, Certares Opportunities and Apollo Capital Management to provide the equity capital required to fund Hertz’s revised plan of reorganization and exit from Chapter 11.
The proposed agreements made with the organization collectively now known as the KHCA Group, as well as any necessary modifications to the plan and solicitation procedures, are subject to the approval of the bankruptcy court at a hearing scheduled for Friday.
Under the revised proposal, Hertz explained its Chapter 11 plan will be funded through direct common stock investments from the KHCA Group and certain co-investors aggregating $2.781 billion, the issuance of $1.5 billion of new preferred stock to Apollo and a fully backstopped rights offering to the company’s existing shareholders to purchase $1.635 billion of additional common stock.
Hertz also indicated the revised Plan would provide for the payment in cash in full of all administrative, priority, secured, and unsecured claims in the Chapter 11 cases and would deliver significant value to the company’s existing shareholders including:
— $239 million of cash
— Common stock representing 3% of the shares of the reorganized company that are subject to dilution from warrants and equity issued under a new management incentive plan
— 30-year warrants for 18% of the common stock of the reorganized company that are also subject to dilution by a new management incentive plan with a strike price based on a total equity value of $6.5 billion, or the opportunity, for eligible shareholders, to subscribe for shares of common stock in the $1.635 billion rights offering at plan equity value
As previously announced, the company highlighted that two investor groups have been competing to fund Hertz’s Chapter 11 exit.
On April 21, the bankruptcy court overseeing Hertz’s Chapter 11 cases authorized Hertz to begin soliciting votes on its Chapter 11 plan and approved a group consisting of:
— Centerbridge Partners
— Warburg Pincus
— Dundon Capital Partners
— An ad hoc group of the company’s unsecured noteholders know collectively as the CWD Group.
“When it became apparent that the competition to sponsor the company’s plan would continue, the company sought and obtained court approval of bidding procedures and an auction process to ensure that it received the highest and best sponsorship proposal within a timeframe that would permit the company to continue working toward a planned exit from Chapter 11 by June 30,” Hertz said.
“A robust competition between the CWD Group and the KHCA Group ensued, concluding with the selection of the revised KHCA Group’s proposal late (Tuesday) following the auction,” Hertz continued.
As with the CWD Group’s previous proposal, Hertz pointed out the KHCA Group’s proposal would eliminate approximately $5.0 billion of corporate debt — including the complete elimination of all corporate debt on Hertz’s European business — and provide the company with more than $2.2 billion of global liquidity.
Hertz also noted that the KHCA Group’s proposal would replace the bridge financing previously provided by the CWD Group to fund the company’s European fleet needs prior to the plan’s consummation.
The debt funding commitments for Hertz’s Chapter 11 plan, which were approved by the court earlier this week, will remain in place under the KHCA Proposal, according to the company.
“We are very pleased that our plan process produced such a tremendous result for our creditors and shareholders,” Stone said in the news release. “We appreciate the strong interest in Hertz from the competing plan sponsors and thank them for their active engagement, which provided us with excellent options for our exit from Chapter 11.
“We look forward to working with the KHCA Group to complete the remaining steps in our restructuring and best position Hertz for the future,” he continued.
Hertz went on to mention the proposed deal with the KHCA Group is reflected in definitive documents executed by the plan sponsors, including:
— An equity purchase and commitment agreement
— A plan support agreement
— A bridge financing commitment for Hertz International
— An amended Chapter 11 plan of reorganization.
Hertz said these documents, together with an amended disclosure statement, were to be filed with the bankruptcy court on Wednesday.
If the bankruptcy court approves the revised agreements with the KHCA Group at the hearing scheduled for Friday, Hertz reiterated that it would terminate its agreements with its existing plan sponsorship group — which still remain in effect — and execute the new agreements with the KHCA Group.
Another court hearing to confirm Hertz’s plan of reorganization is scheduled for June 10.
“Our proposed plan provides a robust recovery and excellent value for all of our stakeholders and enables Hertz to emerge as a much stronger, more competitive company,” Stone said. “During our restructuring, we have made material improvements in our operational efficiency and have built added cost discipline into our business.
“Now, we look forward to implementing our Chapter 11 plan, which will substantially strengthen our financial structure by eliminating 79% of our corporate debt,” he continued. “We are well-positioned to take advantage of increasing global travel demand and new long-term growth opportunities. We are excited about Hertz’s future and the benefits for all of our stakeholders — including our employees and customers as well as our investors, franchisees and business partners.”
White & Case LLP is serving as a legal advisor. Moelis & Co. is serving as an investment banker. FTI Consulting is serving as a financial advisor.
To view court documents or filings, go to https://restructuring.primeclerk.com/hertz or call (877) 428-4661 (toll-free in the U.S.) or (929) 955-3421 (from outside the U.S.).
Enterprise Holdings is enhancing its cleaning procedures through a new initiative with Clorox.
Enterprise says the collaboration reinforces its Complete Clean Pledge, which the company implemented to help customers feel confident as they begin to travel again.
Enterprise Holdings’ Complete Clean Pledge is a commitment to health and safety practices throughout all of its operations. That includes vehicles, branches, shuttles and employees and customers.
The company will kick off the initiative by providing what it describes as an industry-first in car rental: a one-count Clorox Disinfecting Wipe in every vehicle rented through its brands: Enterprise Rent-A-Car, National Car Rental and Alamo Rent-A-Car.
The Clorox Disinfecting Wipes are approved by the EPA to kill SARS-CoV-2, the virus that causes COVID-19, when used as directed. Each wipe includes directions for use. Also included are instructions to use it on the vehicle's high-touch, hard nonporous surfaces.
Enterprise is rolling out the effort this month throughout the Southeast. It will expand to locations throughout the rest of the U.S. and Canada after the first of the year, as well as to the Enterprise Truck Rental and Enterprise Car Sales businesses.
Enterprise Holdings’ senior vice president of North American operations Will Withington said the company started the program to increase customers’ peace-of-mind.
“We heard this loud and clear from car rental customers — they want more personal cleaning control, in addition to our already rigorous cleaning and sanitizing procedures that follow each rental,” Withington said in a news release. “In fact, nearly 80% of those we surveyed said they would feel most comfortable renting if they were to receive a disinfecting wipe to wipe down high-touch areas themselves.”
The company introduced its Complete Clean Pledge in May. Since then it has worked with its three car rental brands to advance health and safety practices throughout their operations.
“That's why we are proud to provide an additional layer of customer control and peace of mind on top of our Complete Clean Pledge with the trusted cleaning and disinfecting expertise of Clorox,” Withington said.
Enterprise said that as it works with Clorox to benefit customer health and safety, it hopes to improve consumer confidence across North America in the years ahead.
"As the world continues to confront the global COVID-19 pandemic, disinfectants play an important role in and out of the home,” said Heath Rigsby, vice president of Out of Home at The Clorox Company.
Rigsby continued, “Helping to restore confidence in essential travel is an important step in our recovery as a society. Our program with Enterprise, a company committed to the highest standards of cleanliness, allows us to continue supporting businesses as they serve their customers in a responsible way.”
Enterprise is working with Clorox to look at additional ways to incorporate other products into its safety and car cleaning practices and test new technologies throughout its rental operations.
"We want customers to know we are working closely with trusted experts and always reviewing our cleaning standards and protocols and that their safety is our highest priority as they begin to travel, now and in the future," Withington said.
Enterprise Holdings expanded on Complete Clean Pledge’s long-term commitment to well-being and safety in the areas of vehicles, branches, shuttles and employees and customers.
Regarding vehicles, Enterprise Holdings’ thoroughly cleans them between every rental and backs that with an in-vehicle Complete Clean Pledge notification. This includes washing, vacuuming, general wiping down and sanitizing with a disinfectant that meets leading health authority requirements, emphasizing more than 20 high-touch points. The company is also investing throughout its global operations toward upgrading cleaning and car wash facilities. That includes industrial vacuuming and cleaning equipment along with lighting.
In the area of branches, Enterprise says employees frequently sanitize touchable surfaces with disinfectant throughout the day in branch locations. That includes counter tops, phones, tablet devices, payment devices, door handles, and other high-touch areas. The company is also investing in and improving the rental experience. That includes implementing permanent low- and no-touch rental options such as advanced check-in at Enterprise’s neighborhood locations and enhanced curbside and delivery processes. The company said that echoes National’s Emerald Club experience in which members get a virtually no-touch process and bypass the counter to reserve and choose a car from the Emerald Aisle, check out and go.
Regarding shuttles, The company cleans and sanitizes high-touch areas of its shuttles with a disinfectant frequently and between trips. Enterprise implements social distancing protocols as passengers board, ride and depart. It also limits the number of passengers on each bus.
On the topic of employees and customers, employees working in branch locations follow what the company describes as best practices recommended by health authorities. The company says it does that to help protect and reduce risk. That includes requiring employees and customers to wear face coverings inside locations, limiting numbers of employees and customers in branches, and using social distancing inside and outside of locations. The company has installed Plexiglass and counter shields at branch locations.
