Hertz Mulls Loans to Support Continuing Operations

Hertz is evaluating two loan offers of about $1 billion to $1.5 billion to support continuing operations after self-funding through the first four months of bankruptcy, according to a Bloomberg report.  

The offers are put forth by a group of Hertz’s unsecured creditors and a separate set of first-lien creditors, the report states. The offers aren’t yet formal.  

When it declared bankruptcy in May, Hertz said it could survive on its $1 billion in cash on hand. In an unusual move, Hertz attempted to raise money in June by selling up to $1 billion in stock.  

“The recent market prices of and the trading volumes in Hertz’s common stock potentially present a unique opportunity for the debtors to raise capital on terms that are far superior to any debtor-in-possession financing,” Hertz said in the filing.  

Hertz soon abandoned the idea, and in August, announced it was seeking debtor-in-possession financing.