Hertz Global Holdings Inc. soon plans to line up a $4 billion financing package to refresh its vehicle fleet, on top of a $1.65 billion loan to carry itself through bankruptcy, WSJ Pro Bankruptcy reported. The rental-car company, which filed for chapter 11 in May, received permission from the U.S. Bankruptcy Court in Wilmington, Del., on Thursday to begin tapping a $1.65 billion loan to help it operate through 2021. Some of that money could be used to buy cars, with the rest earmarked for other corporate purposes. Hertz has been liquidating parts of its fleet, cutting the number of vehicles it leases from banks and bondholders to adapt to slumping demand during the coronavirus pandemic. But the company is also in the market for new models as aging vehicles are sold off. During a court hearing Thursday, Hertz lawyer Tom Lauria said, “We need to start ordering new vehicles.” The $1.65 billion bankruptcy loan will help, but Hertz needs more financing from asset-backed securities, Lauria said. Hertz hopes to get commitments for the additional $4 billion in ABS financing in coming days, he said.
