Hertz Global Holdings Inc is preparing to file for bankruptcy as soon as Friday night after failing to reach a standstill agreement with its top lenders, the Wall Street Journal reported, citing people familiar with the matter.
The Estero, Florida-based company, which operates the Hertz, Dollar and Thrifty car-rental brands, had been holding talks with creditors after skipping significant car-lease payments due in April.
Forbearance and waiver agreements on the missed payments were set to expire on Friday.
The company has been dealt a massive blow by the pandemic, and its disruption to the global travel and used-car markets. Earlier this month, it canceled 90% of its new car purchases for the 2020 model year.
The rental-car giant’s decision to curtail orders underscores the ripple effects the COVID-19 crisis is having on the travel business and auto industry. Automakers rely on rental companies to buy about 1.7 million vehicles a year, or about 10% of U.S. auto sales.
Hertz has been belt-tightening and negotiating with creditors to try to navigate the pandemic.
Bloomberg News contributed to this report.