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Hertz Gets Lenders’ Forbearance in Bid to Avert Bankruptcy

  • Company has until May 22 to craft a financing strategy
  • Car renter won’t need to acquire vehicles through rest of 2020
Photographer: Victor J. Blue/Bloomberg
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Lenders granted Hertz Global Holdings Inc. an eleventh-hour reprieve from a potential bankruptcy, giving the struggling rental-car company more time to work out a rescue plan after it missed debt payments.

The forbearances and waivers give Hertz until May 22 to “develop a financing strategy and structure that better reflects the economic impact of the Covid-19 global pandemic,” the company said in a regulatory filing. Hertz shares, which had plummeted as much as 36% before the start of regular trading, were down 14% as of 3:23 p.m. Tuesday in New York.