Hertz Defeats Demand for Early Payoff Fee in Bankruptcy Court
- Judge in Delaware says make whole payment barred by code
- Bondholders likely to appeal in fight for $224 million fee
Cars on a Hertz car rental lot in Berkeley, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Hertz Corp. does not have to pay bondholders nearly $224 million as a penalty for paying off debt early when the car renter restructured its balance sheet in bankruptcy last year, a federal judge ruled Wednesday.
The ruling by US Bankruptcy Judge Mary Walrath is likely to be appealed by bondholders to the Third Circuit Court of Appeals in Philadelphia, both sides said at the end of the hearing.