Jul 27, 2020 (Baystreet.ca via COMTEX) -- Hertz Global Holdings Inc. /zigman2/quotes/200655672/composite HTZ -2.71% has struck a deal that will cut the debt it owes lenders to less than $5 billion U.S. from $11 billion U.S. by year's end.
Under an agreement with lenders, Hertz has agreed to sell 182,000 cars over the next few months. The deal requires Hertz to make $650 million U.S. in lease payments. The reduction in the $11 billion U.S. in debt is tied to future auto sales, according to court filings.
Hertz and its vehicle lenders had been fighting about how much the company owes under a lease contract that governs the rental car company's vehicle fleet.
Lenders had said they were owed $1.8 billion U.S. in regular payments through December 31 under that lease. Hertz and lower-ranking creditors have maintained the amount owed is far less.
The judge presiding over Hertz's restructuring in bankruptcy court has sided with the company and provided it with some breathing room over the coming months.
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