Hertz Reportedly Prepares To File For Bankruptcy; Stock Plunges

(RTTNews) - Hertz Global Holdings Inc. (HTZ) is preparing to file for Chapter 11 bankruptcy protection as soon as Monday night if the company fails to rework its debt, Bloomberg reported citing people familiar with the matter.

HTZ closed Monday regular trading at $3.59, up $0.08 or 2.28 percent. But, in the after-hours trade, the stock dropped $0.87 or 24.23 percent.

The Wall Street Journal reported that the car rental company has hired an additional adviser to help with a forthcoming bankruptcy filing. Hertz reportedly has engaged FTI Consulting Inc. to advise it on efforts to streamline operations ahead of a filing, amid a drop in demand with the coronavirus pandemic.

The Journal reported last month that Hertz had hired lawyers and investment bankers as advisers as it tries to renegotiate its $17 billion of debt.

Meanwhile, the company has been talking to some of its creditors about how to ease its burden without going through bankruptcy, but negotiations have been a struggle and the company is preparing to file for the bankruptcy, Bloomberg reported.

Hertz could file the bankruptcy Monday night, though Tuesday would be more likely if a deal isn't reached. The situation could still change and a filing isn't definite, the report said.