Hertz looks to reject lease payments for cars in ABS master trust
Hertz filed a motion to reject the leases on approximately 30% of the rental fleet included in its securitization master trust, a move that would significantly cut costs for the bankrupt car rental company. If granted, the rejection would have repercussions for subordinated bond holders and set a precedent for future ABS bankruptcies, sources say.
Hertz made headlines for its decision to sell up to $500m in stock while it is going through a Chapter 11 bankruptcy process. The request to sell up to $1bn in stock was approved last week by the US Bankruptcy Court for the District of Delaware.