Hertz is looking to secure a $4 billion financing package to refresh its fleet of vehicles as it tries to get back on its feet.
The rental car giant has been hit hard by coronavirus shutdowns and the lack of travel around the world. It filed for Chapter 11 earlier this year and in October, secured $1.65 billion in financing to help it through bankruptcy proceedings. It has since filed a motion asking the U.S. Bankruptcy Court in Delaware to approve the financing that will keep it operational through 2021.
Read More: Hertz Primed To Get $1.65 Billion In Financing, Could Use $1 Billion On New Cars, Shares Soar 143%
In addition to this financing, The Wall Street Journal has revealed that the car rental company is looking to line-up a $4 billion financing package to get a new fleet of vehicles. During a recent court hearing, a lawyer for Hertz said “We need to start ordering new vehicles.”
Hertz hopes to get commitments for $4 billion in asset-backed financing in the coming days. Throughout 2020, it has been liquidating parts of its fleet while cutting the number of vehicles that it leases from banks and bondholders in order to adapt to lowered demand for its vehicles.
In other Hertz-related news, the New York Stock Exchange recently determined that the company is no longer suitable for listing having filing for bankruptcy on May 22 and after its appeal was reviewed. As such, its stock no longer trades on the NYSE and is now available exclusively on the OTC Bulletin Board, or pink sheets, under the ticker symbol HTZGQ.
