ABS investors weigh options in Hertz bankruptcy

Hertz adobe stock 575x375
By Jennifer Kang
28 May 2020

ABS investors watched nervously last week as car rental company Hertz filed for bankruptcy, with few good options to keep cash flowing in the face of a crisis that has curtailed travel and depressed used car values. However, sources say that there are a number of reasons investors should be pinning their hopes on a reorganization rather than a liquidation.

Hertz filed for chapter 11 bankruptcy on May 22 after failing to reach an agreement with lessors. The company first announced that it was having trouble making payments on April 27 and entered into a forbearance agreement shortly after, buying the company time through May 22. 

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