Hertz Reaches Forbearances And Limited Waivers With Lenders To Avoid Bankruptcy

(RTTNews) - Hertz Global Holdings Inc. (HTZ) disclosed in regulatory filing that it reached forbearances and limited waivers with certain of the company's corporate lenders and holders of the company's asset-backed vehicle debt.

In Tuesday pre-market, HTZ is trading at $3.15, down $0.445 or 12.38 percent.

The forbearances and waivers provide the company with additional time through May 22, 2020 to engage in discussions with its key stakeholders with the goal to develop a financing strategy and structure that better reflects the economic impact of the COVID-19 global pandemic and Hertz' ongoing operating and financing requirements.

Hertz said that there can be no assurances that the company will be able to successfully negotiate any further forbearance or waivers extending relief past May 22, 2020.

On Monday, there were reports that Hertz was preparing to file for Chapter 11 bankruptcy protection if the company fails to rework its debt.

Meanwhile, the company today disclosed in the regulatory filing that it restored the base salaries of those employees who had voluntarily reduced their salaries as a proactive measure to reduce costs in response to COVID-19's impact on travel demand. Effective May 11, 2020, the base salaries of senior leaders will be restored to pre-voluntary reduction levels except that the Company's Chief Executive Officer, Kathryn Marinello, who had previously voluntarily forgone her entire base salary, has voluntarily agreed to a 10% salary reduction going forward.