Hertz Global Holdings Inc., the giant rental-car firm running low on cash, hasn’t made certain payments related to leasing vehicles for its fleet as it engages in talks with lenders to reduce the obligations.
With travel virtually ground to a halt across much of the globe, Hertz has furloughed employees and is trying to further reduce monthly expenses to lease vehicles from its special-purpose vehicle-finance subsidiary. While the company said in a regulatory filing that it’s reached an agreement with holders of the subsidiary’s notes, talks with lenders are ongoing.
“It’s not surprising senior lenders are balking,” Joel Levington, a Bloomberg Intelligence credit analyst, said in an email. “To give up a superior structure position for an uncertain future in a diluted position is asking a lot in this environment.”
Hertz’s negotiations with lenders underscore the amount of pressure the broader rental-car industry is under. Avis Budget Group Inc.’s revenue has…