Hertz approved to use cash collateral to repay sidecar loan

By Caroline Salls

Pittsburgh, Aug. 11 – Hertz Corp. received court approval to use sidecar cash collateral to repay in full its pre-bankruptcy sidecar credit facility, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As of its bankruptcy filing date, Hertz said about $93 million was outstanding under the sidecar facility.

Proceeds of the sidecar facility have been used primarily to finance vehicles to be sold through the company’s direct-to-consumer retail used car sale platform.

All of the cash generated by the sale of pledged vehicles and the proceeds of those sales constitute the pre-bankruptcy sidecar secured parties’ cash collateral.

Hertz said it wants to repay the sidecar facility in full to preserve value for its estates by saving future interest and professional fee expenses.

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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