In an 8-K filing with the Securities and Exchange Commission on April 27, Hertz disclosed it has missed certain vehicle lease payments for its U.S. rental car fleet “to preserve liquidity to support its ongoing operations,” Hertz states in the filing.
In the filing, Hertz states that discussions with some lenders have resulted in “the required support” to “temporarily reduce the required payments under the Operating Lease.” However, Hertz states “it has not yet received sufficient support for the required waivers from other required lenders.”
According to the 8-K filing:
Hertz is continuing to engage in ongoing discussions with such lenders to reduce its obligations under the Operating Lease and avoid certain consequences of the payments not made on April 27, 2020 under the Operating Lease.
If such payments are not made by the end of a grace period on May 4, 2020, and a sufficient amount of Hertz’ Senior Credit Lenders and VFN Noteholders do not agree to waive any resulting default or forbear from exercising remedies, Hertz could be materially and negatively impacted.
The Wall Street Journal reports that the company is preparing for a bankruptcy.