Hertz gets six-month extension of plan filing, solicitation periods

By Sarah Lizee

Olympia, Wash., Oct. 5 – Hertz Corp. got an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

The court extended its exclusive filing period to March 22, 2021 and the solicitation period to May 17, 2021.

As previously reported, in the initial months of the Chapter 11 cases, the company said it has worked to transition into operating as debtor-in-possession, capitalize on unique conditions of the used car market and enter into several important agreements that it believes will provide a foundation for a successful restructuring and eventual emergence from bankruptcy through a Chapter 11 plan.

The company said the breathing room provided by the bankruptcy code and the strong foundation created by settlements has positioned it to begin soliciting proposals for DIP financing that will ensure that it has enough capital to successfully restructure its business, develop a long-term business plan and negotiate and formulate a Chapter 11 plan.

“Although the debtors have made substantial progress, there is much that remains to be done,” the motion said. “This work requires time, particularly in light of the continued uncertainty and challenges posed by the ongoing Covid-19 pandemic.”

Hertz is an Estero, Fla.-based car rental company. It filed Chapter 11 bankruptcy on May 22. The Chapter 11 case number is 20-11218.

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