Hertz Bondholders, Jilted in First Bankruptcy, Fear New Turmoil

Hertz Corp. bondholders who are owed about $320 million in unpaid interest leftover from the company’s Covid-era bankruptcy, fear the car renter will delay paying them in the face of fresh financial turmoil, a lawyer said in federal court Friday.

Bondholders want to get paid as soon as possible. Hertz putting off payment forces the creditors to bear the risk that the company’s financial health will deteriorate further, said Mark T. Stancil, an attorney for the bondholders’ trustee.

“It would be highly inequitable for an unimpeded creditor to be holding unsecured risk on the eve of the potential of ...