Hertz Defends Stock Buybacks That Gave Private Equity Control

Hertz Global Holdings Inc. is defending $2.8 billion in stock buybacks that a shareholder says “gifted” a majority stake in the car rental giant to its post-bankruptcy private equity backers.

It’s true that CK Amarillo LP increased its ownership to over 56% “at least for now” as a result of the buybacks in November 2021 and June 2022, Hertz’s attorney, Marjorie Duffy of Jones Day, told the Delaware Court of Chancery on Monday.

But gaining control wasn’t a guaranteed result in either buyback for the private equity fund set up by Certares Management LLC and Knighthead Capital Management LLC, she ...