Hertz filed for Chapter 11 bankruptcy in May. - Photo via Enjosmith/Flickr.

Hertz filed for Chapter 11 bankruptcy in May.

Photo via Enjosmith/Flickr.

Hertz Global Holdings has reached an interim settlement with debtors to suspend litigation related to the car rental company’s plan to reduce its leased fleet of rental cars, according to an SEC filing on Friday.

Under the terms of the agreement, Hertz agrees to pay $650 million of rent in equal monthly installments from July to December of this year and dispose of at least 182,521 leased vehicles between June 1 and December 31.

In return, litigation relating to the leases under the asset-backed finance facility (ABS) will be suspended.  

Hertz Vehicle Disposition Schedule Targets
Month June July Aug. Sept. Oct. Nov. Dec. Total
Risk cars to sell/sold 37,353 36,524 27,616 15,438 15,450 15,433 7,089 154,903
Program cars to return/returned 11,349 1,621 3,821 5,704 1,125 1,775 2,223 27,618

 

Hertz filed for Chapter 11 bankruptcy in May.

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