in relation to its successful restructuring of $19 billion of debt and return of $1 billion of value to shareholders. Walkers acted alongside White & Case, who provided US and European counsel to Hertz.
Following the successful completion of a Chapter 11 restructuring in the US last month, Hertz has emerged as a financially and operationally stronger company that is well-positioned for the future.
Under the Hertz reorganization plan, new investors provided c. US$5.9 billion of new equity capital and the company raised US$2.8 billion of new corporate financing on favourable terms including an undrawn US$1.25 billion revolver and successfully placed US$7 billion of new ABS financing with an all-in yield of less than 2 percent. The complex transaction results in a materially strengthened business with the global liquidity needed to fuel its future growth, while reducing corporate debt by c. US$5 billion. All creditors are being paid in full, in cash, and shareholders are receiving a mix of cash, stock and warrants.
As described by Judge Mary Walrath in the Bankruptcy Court of Delaware, the outcome is 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."
The Walkers Ireland multi-disciplinary team was led by Partners William Greensmyth (Restructuring), Jonathan Sheehan (Tax), Andrew Traynor (Finance and Capital Markets) and Brendan O'Brien (Corporate).
Walkers is recognised as having a market-leading restructuring, insolvency and corporate recovery team amongst Ireland's international financial services law firms.
