Hawking proposes a third, tantalizingly simple, option. Quantum mechanics and general relativity remain intact, but black holes simply do not have an event horizon to catch fire. The key to his claim is that quantum effects around the black hole cause space-time to fluctuate too wildly for a sharp boundary surface to exist.
In place of the event horizon, Hawking invokes an “apparent horizon”, a surface along which light rays attempting to rush away from the black hole’s core will be suspended. In general relativity, for an unchanging black hole, these two horizons are identical, because light trying to escape from inside a black hole can reach only as far as the event horizon and will be held there, as though stuck on a treadmill. However, the two horizons can, in principle, be distinguished. If more matter gets swallowed by the black hole, its event horizon will swell and grow larger than the apparent horizon.http://www.nature.com/news/stephen-hawking-there-are-no-black-holes-1.14583