Hertz Starts Talks With Bondholders Over Make-Whole Payout Suit

Hertz Corp. has kicked off negotiations to settle litigation surrounding a make-whole payout of over $270 million that has been demanded by some bondholders, the company said on Monday.

Both sides have made settlement proposals since last week, according to a regulatory filing. The holders have entered into a confidentiality agreement and no agreement has been reached yet.

The car rental company, which has over $6 billion of debt, has been mired in legal battles with bondholders following its controversial bankruptcy, during which it became solvent. Because of the unusual situation, the company repaid all creditors in full and ...