Hertz, creditors at impasse on negotiation (Reports).
Hertz (HTZ) is reportedly in a deadlock with its creditors as it looks to come to an agreement over lease payments for its vehicle fleet as it attempts to avoid filing for bankruptcy.
Sources for Bloomberg said the rental car company is looking to cut a deal with its creditors over missed debt payments, but the parties have yet to reach an agreement, which could force Hertz into filing for bankruptcy protection in the coming days.
Hertz has until Friday to make about $400 million in lease payments for its fleet of vehicles or extend a forbearance agreement with its creditors, the news outlet reported. If Hertz is unable to make the payments or come to an agreement with its creditors, bankruptcy may be unavoidable.
However, there is the possibility that lead shareholder Carl Icahn could rescue the company as he looks to protect his $1.6 billion investment that is now valued at $170 million, sources told Bloomberg.
Hertz has halted about 90% of its new car orders for 2021, a move that could pinch automakers as the car rental segment typically brings about 10% of auto sales for the year. Hertz has also offloaded a number of 2019 Chevy Corvette Z06s in its flagship yellow and black livery for cheap as it looks to further pare down its fleet.
Shares of Hertz stock were down 7.4919% as of 10:56 a.m. EDT on Friday.