Westlaw News

Hertz junior creditors sue Barclays, BOKF over rights to cash, securities

A group of Hertz junior creditors have sued the bankrupt rental car company’s senior lenders to prevent them from laying claim to $887 million in Hertz’s cash and securities.

The company’s official committee of unsecured creditors filed the complaint on Friday in Delaware bankruptcy court, where Hertz’s Chapter 11 case has been proceeding since May. The committee, represented by Kramer Levin Naftalis & Frankel, is seeking declaratory judgments from U.S. Bankruptcy Judge Mary Walrath finding that Barclays Bank, as Hertz’s first lien collateral agent, and BOKF NA, as the second lien collateral agent, do not have liens on $307 million in cash held in deposit accounts or $580 million in money market securities.

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