Hertz Prepares to File Bankruptcy If Monday Deadline Is Missed
(Bloomberg) — Hertz Global Holdings Inc. is preparing to file for bankruptcy as soon as Monday night if the company fails to rework its debt and can’t get lenders to extend a grace period on a missed payment.
The rental-car company has been talking to some of its creditors about how to ease its burden without going through bankruptcy, but negotiations have been a struggle and the company is preparing to file for Chapter 11 court protection, according to people with knowledge of the matter.
Hertz could file this evening, though Tuesday would be more likely if a deal isn’t reached. The situation could still change and a filing isn’t definite, said the people, asking for anonymity to discuss the confidential talks. A representative for Hertz didn’t return an email and calls seeking comment.
A Chapter 11 filing would permit Hertz to stay in business while it works out a plan to pay its creditors and turn the business around. The company expanded its roster of advisers to include FTI Consulting Inc., which specializes in restructuring and bankruptcy cases, the people said, confirming an earlier report by the Wall Street Journal.