Hertz Global Holdings Inc. brought in restructuring advisers to rework the rental-car company’s debt amid a bleak outlook for business trips and vacations.
Management is seeking advice from restructuring bankers at Moelis & Co. on ways to boost liquidity and avoid filing for Chapter 11 bankruptcy, according to people familiar with the situation.
One of the options that has been under discussion with bankers is raising cash by issuing new debt, Bloomberg previously reported. The maneuver would need an amendment to a secured debt facility, the people said, asking not to be identified while discussing a private matter. The situation remains fluid and plans could change, depending on market conditions and federal support.
A representative for Hertz, based in Estero, Fla., declined to comment. Andrea Hurst, a spokeswoman for Moelis, declined to comment. Hertz has $1 billion in liquidity and no significant corporate debt maturities until June 2021, according a March 26 filing.