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Hertz tanks 29% on reports it could file for bankruptcy as coronavirus pummels travel industry (HTZ)

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  • Hertz missed a lease payment on Monday, The Wall Street Journal reported on Wednesday.
  • The company said its advisers are negotiating with holders and senior lenders of its vehicle finance subsidiary's notes with the goal of reducing payments temporarily, according to a Wednesday filing. 
  • Shares of Hertz fell as much a 29% on Wednesday. 
  • The coronavirus pandemic has siginificantly lowered rental-car business, as travel has slowed amid lockdowns. 
  • Watch Hertz trade live on Markets Insider.
  • Read more on Business Insider.

Shares of Hertz plummeted as much as 29% Wednesday on reports that the company is preparing to file for bankruptcy.
Later in the day, the stock pared some of those losses but still traded down about 16%.
The rental-car company recently missed a lease payment on Monday, The Wall Street Journal reported on Wednesday. Hertz and its advisers are negotiating with holders and senior lenders of its vehicle finance subsidiary's notes with the goal of reducing payments temporarily, according to a Wednesday filing.
Hertz is also in talks with lenders on an agreement to avoid bankruptcy, according to The Journal. And it had talks with banks and the Treasury department on avoiding bankruptcy, Bloomberg reported Wednesday.
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The reports come amid fallout from the coronavirus pandemic, which has slammed rental-car companies as lockdowns and bans of nonessential business have kept consumers at home. Hertz's own business is down about 80% since the beginning of the coronavirus pandemic, Bloomberg reported.
The company has laid off 10,000 employees in North America in April following furloughs in March.
Hertz stock has slumped this year as the coronavirus pandemic halts travel in the US. The company has shed nearly 69% year-to-date through Tuesday's close.
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