Creditors to Hertz Global Holdings Inc. are organizing into at least two separate groups ahead of potential negotiations over the company's outstanding debt obligations, according to individuals familiar with the matter.
Hertz faces billions of dollars in debt maturities over the coming years. The formation of distinct creditor groups typically precedes formal discussions, allowing lenders to coordinate positions and objectives before talks with management.
These groups are expected to engage financial and legal advisors to assess Hertz's financial condition, evaluate repayment scenarios and structure their negotiating approach.
Hertz emerged from Chapter 11 bankruptcy in June 2021 after a prior restructuring significantly reduced its debt load. The current organization of creditor groups signals renewed scrutiny of the company's capital structure and upcoming obligations.
Creditors forming alliances typically aim to maximize recovery and negotiating influence. Multiple groups often reflect diverse interests among different classes of creditors and bondholders, each seeking the most favorable terms as debt maturities approach.
Future negotiations will likely focus on refinancing options, debt extensions or other strategies to manage upcoming maturities. The outcome will affect Hertz's cost of capital and its ability to invest in fleet modernization.
