Published on Monday, October 19, 2020

Hertz to get USD1.65 billion bankruptcy funding

Hertz Global Holdings is set to get a $1.65 billion bankruptcy loan to get the company up and running again.


According to court documents, funds will come from Apollo Global Management, Silver Point Capital, and Diameter Capital Partners.


The loan still has to be formally approved by the federal bankruptcy court in Delaware later this month.


Hertz said it plans to use about $1 billion to acquire new vehicles in the US and Canada.


Remaining funds would be used for working capital and general corporate purposes.


 "This new financing will provide additional financial flexibility as we continue to navigate the pandemic's effects on the travel industry and take steps to best position our business for the future," said Hertz CEO Paul Stone.


The car rental giant filed for bankruptcy in May.


Its debt had grown to more than $24 billion, according to the bankruptcy filing at the time.


 


Written by Ray Montgomery, US Editor

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