Hertz to Cut $6 Billion in Vehicle Debt by Year End, Lawyer Says
- Deal with lenders will save company cash in bankruptcy
- Hertz selling 182,000 rental cars into strong used car market
Photographer: Luke Sharrett/Bloomberg
This article is for subscribers only.
Hertz Global Holdings Inc. has struck a deal that will cut the debt it owes lenders who financed its rental car fleet to less than $5 billion from $11 billion by Dec. 31, the company’s main bankruptcy lawyer said in court Friday.
Under an agreement with the lenders, Hertz has agreed to sell 182,000 cars over the next few months, Tom Lauria told U.S. Bankruptcy Judge Mary Walrath. The deal requires Hertz to make $650 million in lease payments. The reduction in the $11 billion in vehicle debt is tied to the auto sales, Lauria said.