Hertz Global Holdings Inc. inked an agreement with lenders to provide a 2½ week extension for debt restructuring negotiations after the car rental company missed a recent lease payment, WSJ Pro Bankruptcy reported. The Estero, Fla.-based car-rental company got lenders to waive the potential debt default until May 22 to provide additional time for discussions “with the goal to develop a financing strategy and structure that better reflects the economic impact of the Covid-19 global pandemic and Hertz’ ongoing operating and financing requirements,” according to a securities filing yesterday. The extension buys the company time to negotiate with lenders and bondholders regarding a planned chapter 11 filing. The Wall Street Journal reported on Monday that the company has hired FTI Consulting Inc. as a restructuring adviser for the planned bankruptcy, in addition to other legal and financial help. Hertz’s financial restructuring is expected to be unusually complex, given the company’s immense balance sheet with more than $17 billion in debt, as well as a complicated capital structure. Hertz, as well as rival Avis Budget Group Inc., have come under intensifying financial pressure as ridership has plunged with travel curtailed.
