Hertz Global Holdings Inc.

reached an eleventh-hour pact with lenders to give the struggling rental-car company more time to rework its debt and extend a grace period on payments it has missed related to leasing vehicles.

The forbearances and waivers give the company until May 22 to “develop a financing strategy and structure that better reflects the economic impact of the Covid-19 global pandemic,” Hertz said in a regulatory filing. The shares briefly erased a decline of as much as 36% and were still down 11% as of 8:55 a.m. Tuesday in New York, before the start of regular trading.

The rental-car company had been talking with some of its creditors about how to ease its burden without going through bankruptcy, and the company was preparing to file for Chapter 11 court protection if needed, according to people with knowledge of the matter, who asked for anonymity to discuss the confidential talks.

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Hertz Strikes Deal With Lenders To Avoid Bankruptcy

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