Hertz Global Holdings Inc. is getting ready for a possible bankruptcy filing after the rental-car business stopped working to make lease payments to maintain cash amidst the Covid-19 pandemic, according to people aware of the issue.
The rental car company and its advisers are working out with senior lending institutions as well as particular holders of its lorry financing subsidiary’s notes with the purpose of briefly decreasing payments, the company said Wednesday in a protections filing.
The circumstance is fluid, the people acquainted with the matter said, including that Hertz is in talks with loan providers on a forbearance arrangement to forgo a default and to possibly stay clear of bankruptcy.
Hertz Global Holdings have hired restructuring advisers, people familiar with the matter said. Hertz has $17 billion worth of debt, which includes $3.7 billion of corporate bonds and loans and $13.4 billion of vehicle-backed notes.