Hertz to pay lenders $650 million to resolve dispute over fleet reduction

(Reuters) – Hertz Global Holdings Inc (N:HTZ) said on Friday it has reached an interim $650-million deal with its lenders to resolve a bankruptcy court fight over the company’s plan to reduce its leased fleet of rental cars.

Under the agreement, Hertz will pay $650 million in cash in equal monthly installments from July to December. The car rental company will also dispose of at least 182,521 leased vehicles between June and December.

Hertz had filed for bankruptcy in May after its business was decimated by the coronavirus outbreak and talks with its lenders failed to result in much-needed relief.