Case Background

On May 22, 2020, The Hertz Corporation and certain affiliates (“Hertz” or the “Debtors”) filed voluntary Chapter 11 bankruptcy petitions (the “Hertz Cases”) in the Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”).  Certain international affiliates of the Debtors filed a Scheme of Arrangement in the United Kingdom on December 7, 2020, and one affiliate filed a Chapter 15 petition in the Bankruptcy Court on December 22, 2020.

The questions and answers that follow provide general information concerning the Hertz Cases, the Official Committee of Unsecured Creditors of The Hertz Corporation (the “Committee”), and various topics related to the Hertz Cases and the Committee.  Please note that nothing contained herein is or is intended to be legal advice to any party in the Hertz Cases, and is being provided for convenience only; you should consult with your own lawyer regarding your rights in the bankruptcy cases, as applicable.

What is the Committee?

Pursuant to the Bankruptcy Code, the United States Trustee (the “UST”) is authorized to appoint a committee of creditors holding unsecured claims as soon as possible after the filing of a case.  Generally a creditors’ committee is a group of general unsecured creditors appointed to represent, in a fiduciary capacity, the interests of all general unsecured creditors.  In such role, creditors’ committees act to protect and promote the interests of general unsecured creditors by, among other things, monitoring a debtor’s business operations, investigating its business and financial affairs, and negotiating the terms of a plan of reorganization. 

In accordance with this authority, on June 11, 2020, the UST appointed the Committee [Docket No. 392].

The Committee does not represent individual creditors; it is an estate fiduciary that represents the interests of all unsecured creditors through oversight of and negotiations with the Debtors.  Neither the Committee nor its counsel represents individual creditors that may have claims in the Hertz Cases.

What is the Committee’s role in the Hertz Cases?

Pursuant to the Bankruptcy Code, the Committee may: (1) consult with the trustee or debtor in possession concerning the administration of the cases; (2) investigate the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation or the Debtors’ business and the desirability of the continuance of such business, and any other matter relevant to the case or to the formulation of a plan; (3) participate in the formulation of a plan, advise those represented by the Committee of its determinations as to any plan formulated, and collect and file with the court acceptances or rejections of a plan; (4) request the appointment of a trustee of examiner under section 1104 of the Bankruptcy Code; and (5) perform such other services as are in the interest of those represented.

Who are the members of the Committee?

• American Automobile Association, Inc.
• Janice Dawson
• International Brotherhood of Teamsters
• Pension Benefit Guaranty Corporation
• Sirius XM Radio Inc.
• Southwest Airlines Co.
• U.S. Bank National Association, as indenture trustee
• Wells Fargo Bank, N.A., as indenture trustee

Who represents the Committee?

The Committee has retained (i) Kramer Levin Naftalis & Frankel LLP to act as its co-counsel, (ii) Benesch, Friedlander, Coplan & Aronoff LLP to act as its Delaware co-counsel, (iii) Berkeley Research Group, LLC to act as its financial advisor, and (iv) UBS Securities LLC to act as its investment banker.

• Inquiry email: hertzcommitteeinfo@primeclerk.com
• Toll free: (877) 998-4375
• Local/International: (347) 919-5773

Plan and Disclosure Statement

A On March 2, 2021, the Debtors filed their First Plan of Reorganization and the related Disclosure Statement.  Objections to the disclosure statement were due April 9, 2021.  The Bankruptcy Court held a hearing to consider the approval of the Disclosure Statement on April 21, 2021. 

After approval of the DS, the Debtors held an auction to determine who the plan sponsor would be.  The Plan Sponsors was approved May 14, 2021.  The new Plan unimpairs unsecured creditors (claims that are included in Classes 5 and 7).  Therefore, unsecured creditors are no longer entitled to vote on the Plan. 

Objections are due on June 1, 2021 and the Bankruptcy Court will hold a hearing to consider confirmation on June 10, 2021.

Please click below to view and download documents related to the proposed Plan and Disclosure Statement:

• Plan & Disclosure Statement

Dates and Deadlines

• The Plan Supplement: May 24, 2021
• The Confirmation Objection: June 1, 2021, at 4:00 p.m. (ET)
• The Confirmation Hearing: June 10, 2021, at 10:30 a.m. (ET)
• The June Omnibus Hearing: June 28, 2021, at 3:00 p.m. (ET)

Deadline to File Claims

The Bankruptcy Court has set the following deadlines for filing proofs of claim:

• General Bar Date (including claims pursuant to section 503(b)(9) of the Bankruptcy Code): October 21, 2020, at 5:00 p.m. (prevailing Eastern Time)
• Governmental Bar Date: November 18, 2020, at 5:00 p.m. (prevailing Eastern Time)

For more information on submitting a claim, please visit the Debtors’ restructuring website here.

International Proceedings

Additional information about the Scheme of Arrangement in the United Kingdom can be found here.

Additional information about the Chapter 15 proceeding can be found here.