Hertz Forbearance Agreement

This means that the company now has 2 and a half weeks to reach an agreement to negotiate with lenders the restructuring of its debt or “develop a strategy and financing structure that better reflects the economic impact of the global Covid 19 pandemic and Hertz`s ongoing operating and financing needs”, Hertz said in its statement. In conjunction with the conclusion of the forbearance agreement, Hertz entered into limited waiver agreements with some of the lenders on May 4, 2020 under its (i) Senior Term Loan Facility, (ii) the Accreditation Facility, (iii) the Alternative Acquisition Facility, and (iv) the United States. HVF II is a special purpose finance daughter that issues asset-backed notes to finance the acquisition of vehicles, which HVF then leases to Hertz in accordance with the lease of operations. Hertz has entered into the forbearance agreement with the holders (the “VFN Bondholders”) of bonds (the “Series 2013-A Bonds”) issued by HVF II representing approximately 60% of the total amount of the 2013-A Series Bonds. Under the Forbearance Agreement, VFN`s bondholders have agreed not to exercise rights for the direct election of a liquidation of vehicles serving as collateral for the 2013-A Series bonds. The agreement with VFN`s bondholders expires on May 22, 2020 or, if so earlier, on the day Hertz fails to comply with certain agreements contained in the Forbearance agreement or another depreciation event occurs. . . .