Hertz Seeks to Fix Loan Defaults After Revising EarningsChristine Idzelis
Hertz Global Holdings Inc. will ask some of its most senior lenders for an exemption from defaults because of the rental-car company’s failure to report earnings on time, according to a regulatory filing today.
The company’s bank debt includes a $1.37 billion term loan due in March 2018, according to data compiled by Bloomberg. The loan was quoted at 98.3 cents on the dollar today, with prices declining from above par in January, the data show.
Hertz delayed releasing earnings after an accounting review turned up $87 million of errors so far. The Naples, Florida-based company, which has been searching for a new chief executive officer since Mark Frissora resigned as chairman and CEO in September, said it will revise financial statements from 2011 through 2013.
Hertz had $17 billion of debt as of Sept. 30, including $6.75 million in corporate obligations, according to a statement today. The rental company hasn’t filed any of its quarterly reports this year.
Richard Broome, a spokesman for Hertz, didn’t immediately return a telephone call seeking comment on the waivers.
Earlier this month Hertz said it reached deals with lenders to push out maturities on an asset-based loan and debt tied to its fleet. In connection with the refinancing, it also obtained waivers, or extensions of waivers, as a result of potential or actual defaults resulting from its failure to file periodic reports, according to today’s filing. The waivers are effective through June 30.