Hertz (HTZ) shares fell almost 5% in recent Monday trade as the US Supreme Court sought input from the Trump Administration over a bid by the rental car company to avoid paying $320 million to Wells Fargo (WFC), US Bank (USB) and other bondholders in a case stemming from its Covid-era bankruptcy.
The high court on Monday invited the US Solicitor General to file briefs to express the views of the US government in the case, according to its published order list.
Hertz is seeking to overturn a Second Circuit Court of Appeals panel ruling in November siding with the bondholders, arguing the decision "implicates fundamental principles of bankruptcy law and statutory interpretation."
Wells Fargo, as trustee for bondholders, instead counters investors "have a right to receive contract rate interest and the applicable premiums because Hertz was solvent" at the time it emerged from bankruptcy protection in June 2021 after significantly reducing its prior debt.
The Supreme Court has yet to formally decide whether to hear the case.
Spokespeople and attorneys for the parties did not immediately respond to a request from MT Newswires seeking comment.
Price: 6.22, Change: -0.34, Percent Change: -5.11
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