Carl Icahn’s car-rental firm, Hertz, is gearing up for a potential chapter because the coronavirus pandemic slams the brakes on its enterprise.
The automotive rental firm didn't make an essential month-to-month lease fee tied to its 500,000 automobiles this month, it revealed Wednesday morning.
“Whereas the corporate has taken aggressive motion to get rid of prices, the corporate faces important ongoing working bills,” together with the month-to-month funds that permit it to lease its fleets, it stated in a regulatory submitting Wednesday.
Hertz has “been engaged in discussions” to cut back its lease funds, it stated. But when the funds should not made by the tip of a grace interval on Could 4, 2020, Hertz might be in hassle with out an settlement from a lender, it stated.
As The Publish reported on April 15, Hertz faces a $1 billion-to-$1.5 billion finances shortfall tied to roughly $10 billion in financing it used to lease its fleet of 500,000 automobiles. The car-rental chain solely has $1 billion in money available to make good on that debt, in keeping with monetary information.
Icahn, who owns a 39 % stake in Hertz, has been straight concerned in talks with lenders, sources stated.
“If we will’t make a cope with them, we go bankrupt,” an organization insider stated on the time. “It’s a coin toss whether or not Hertz doesn't go bankrupt by the summer season.”
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