Hertz Noteholders Get Win in Bankruptcy Interest Payoff Row (2)

Hertz Corp. must pay unsecured noteholders more than $260 million in post-bankruptcy interest at the higher rate agreed to in their contracts plus special “make-whole” fees, an appeals court ruled Tuesday.

The car rental company, which emerged from bankruptcy in 2021, owes the noteholders the “make-whole” payments and the higher interest payments because it became solvent during its Chapter 11 case, a three-judge panel of the US Court of Appeals for the Third Circuit said.

The precedential opinion hands a win to noteholders, and adds to a growing body of law related to solvent debtors, post-bankruptcy interest, and make-whole payments—which ...