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Bloomberg
Hertz Global Holdings Inc. is seeking debtor-in-possession financing more than two months after filing for Chapter 11 protection, reflecting the reality that it still faces trouble ahead if travel doesn’t bounce back.
The bankrupt rental-car giant said it is looking for new sources of cash with the travel business in a deep slump and proceeds from the sale of its cars going to pay off creditors.
Hertz had sought to avoid raising funds while it negotiates a debt restructuring with asset-backed securities holders, but the deterioration in its core rental business and uncertainty ahead leaves it with few options. The company’s revenue fell 67% in the second quarter, pushing it $847 million into the red on a net-income basis.