Hertz Global Holdings Inc said on Wednesday it was in talks with its lenders to avoid defaulting on debt related to its rental vehicle fleet, after skipping a payment that was due April 27.
Hertz, whose Hertz Corp subsidiary operates the Hertz, Dollar and Thrifty rental brands, said in a regulatory filing that it had suffered a"sudden and dramatic negative impact" on its business due to the coronavirus pandemic, which has crushed demand for rental cars as people cancel travel and stay at home.Hertz's shares were trading at roughly US$3.71 on Wednesday, down about 20per cent on the day and down around 80per cent from late February. Billionaire Carl Icahn owns 38.
Hertz said that not enough lenders have agreed so far to its request for a waiver or forbearance with regard to the missed payments. Hertz said it has until May 4 to reach an agreement. A trade group representing Hertz, the American Car Rental Association, has been asking Congress to do more for the industry by expanding a US$2.3 trillion stimulus program and advancing new legislation targeting tourism-related businesses.