Did a Last-Second Deal With Lenders Buy Hertz Enough Time?

Hertz Global Holdings (NYSE: HTZ), a vehicle rental company offering cars, crossovers, and trucks for rent, among other services, calmed some fears of an imminent bankruptcy when it announced it entered into forbearances and limited waivers with certain lenders and holders of the company's asset-backed vehicle debt. The company was unable to make certain payments per the operating lease, as plunging used car prices required Hertz to make up the difference in value with cash.

"As a result of the COVID-19 global pandemic, Hertz and its subsidiaries have experienced a rapid, sudden and dramatic negative impact on their businesses," Hertz wrote in a regulatory filing Tuesday. "While Hertz has taken aggressive action to eliminate costs, it faces significant ongoing operating expenses, including monthly payments under its Amended and Restated Master Motor Vehicle Operating Lease and Servicing Agreement with Hertz Vehicle Financing LLC."

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Source Fool.com