The Wall Street Journal reports on the winning bid in the 36-hour auction for control of Hertz in anticipation of its emergence from bankruptcy later this summer. The winning bidders, a group of co-investors led by Knighthead Capital Management and Certares Management, will buy the bulk of Hertz’s equity upon emergence for $2.8 billion. Assuming Hertz’s reorganization plan is confirmed next month as expected, that plan will return more than $7 per share in value to shareholders, a rare result in corporate chapter 11 bankruptcy cases. The winning bid was approved last Friday (May 14, 2021). [WSJ; May 12, 2021] [WSJ; May 14, 2021]
The fallout from Winter Storm Uri in Texas continues, with Bloomberg reporting that Goldman Sachs is having difficulty collecting on a $400 million natural gas trade with a state-owned Mexican power utility. Given that the investment bank has been expanding in the Mexican market and that the costs of the trade might ultimately be passed on to Mexican households, commentators suggest that it is uncertain whether and on what terms the trade will be settled. [Bloomberg; May 17, 2021]
Bloomberg reports that supply chains are at risk of seizing up as global corporate demand for materials has skyrocketed. Businesses are building up their inventory over fears that materials may not be available in the future, which has also stoked further concerns over inflation. [Bloomberg; May 16, 2021]
The Boy Scouts case is generating high legal fees as the parties work towards a resolution of sexual abuse claims; the New York Times reports that Judge Silverstein and other parties are taking a hard look at fee applications. [NYT; May 11, 2021]