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Hertz is hoping to cash in on the coronavirus bailout package as the car rental and sales company is expecting to be short at least $1 billion in future months as a result of new coronavirus-caused business shortfalls, the New York Post reported.
Sources told the outlet Hertz Global Holdings is bracing for a budget deficiency of between $1 billion to $1.5 billion and only has approximately $1 billion in cash to make up for it.
A Hertz spokesperson did not immediately respond to FOX Business' request seeking comment.
Hertz used $10 billion in financing for the purchase of 500,000 for it's used car sales program through asset-backed securities – which means it used the value of the cars as collateral – but in turn, must pay the difference when the car values decrease, and must do so within three months if the values don't increase in that time, the outlet reported.
As of April, pre-owned car values were down between 12 and 15 percent will likely continue to be down, Jefferies analyst Hamzah Mazari told the outlet.
The Carol Icahn-owned company, famous for landing OJ Simpson as the face of the brand in the 70s, is hoping to avoid a potential summer bankruptcy – and even the need to sell – by filing with the aid of the coronavirus bailout.
"If we can't make a deal with them, we go bankrupt," an insider told the Post. "It's a coin toss whether Hertz does not go bankrupt by the summer."
Icahn, who Forbes has reported to be worth approximately $14 billion as of Thursday, owns 39 percent of Hertz.