Hertz signs temporary agreement with creditors linked to fleet reduction plan


Hertz Global Holdings Inc. HTZ,
has reached a $ 650 million interim deal with a group of creditors fighting the car rental company’s plan to downsize its leased fleet, mostly inactive amid the coronavirus pandemic, reported on Tuesday. Wall Street Journal. The resolution between Hertz and its asset-backed securities lenders and their representatives is effective at least until the end of the year, the newspaper said, citing a bankruptcy court filing. Hertz filed for bankruptcy in May and said it wanted to reduce the size of its fleet. Hertz stock is down 91% this year, compared to losses of 6% for the Dow Jones Industrial Average DJIA,
+ 0,59%
and contrasting with gains of 0.8% for the S&P 500 SPX index,
+ 0,16%
in the same period. Hertz withdrew from a planned and controversial stock offer last month.


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