Hertz Global Holdings Inc. is negotiating with its creditors for a loan to bolster operations after months of funding itself during bankruptcy, Bloomberg News reported. The rental-car company is mulling two tentative offers for loans of about $1 billion to $1.5 billion. The proposals came from a group of Hertz’s unsecured creditors and a separate set of first-lien creditors. The offers aren’t yet formal and could fall through as the parties work on the details. Hertz filed for bankruptcy in May without a customary debtor-in-possession loan already in place, opting instead to rely on a large stockpile of cash on hand. The company first disclosed it would seek a DIP loan in August, after its attempt to raise money by selling potentially worthless shares failed. The company meanwhile has resolved a standoff with lenders over leases on its fleet and benefited from rebounding used-vehicle prices. Hertz said in a previous filing that it’s looking for new sources of cash. The travel business remains in a deep slump and much of the proceeds from vehicle sales have been going to pay off creditors.
