Hertz Euro move may signal US Chap. 11

Hertz Global Holdings wants to keep its business in Europe solvent as it prepares for a possible bankruptcy filing in the US, The Post has learned.

The struggling car-rental giant backed by billionaire Carl Icahn on Friday asked lenders to its European division — which represents about 20 percent of sales — to sign a waiver by this Friday that will allow it to avoid bankruptcy, a source said.

Hertz would likely ask for such waiver only if it planned to throw the much larger US division into bankruptcy, according to sources.

The European division is stronger financially than the US arm because a larger percentage of its fleet can be sold back to automakers at guaranteed prices, according to sources.

After missing a May 4 deadline to pay roughly $500 million to creditors, Hertz fought for and was granted an extension until Friday, May 22. It is seeking the waiver as it nears the second deadline at a time when the coronavirus has crushed business.

“It is possible they get a few extra days to make the payment, but nothing more,” a source said.

On Monday, Hertz said Kathryn Marinello resigned as chief executive and has been replaced by Paul Stone, most recently head of the company’s North American retail operations.

Icahn, who owns 39 percent of Hertz, liked Marinello, according to sources, and it’s possible that she quit rather than being forced out. But as The Post has previously reported,

Hertz under Marianello failed to financially prepare for the virus, including turning down a $300 million to $500 million loan in March. She has agreed to be a consultant to the company for the next year.

Marinello’s departure may not be not a good sign, according to Jefferies analyst Hamzah Mazari, who notes that a recent Wharton Business School study suggests that within the US, only 14 percent of CEOs stay on through bankruptcy.

Shares fell 6.6 percent, to $2.96. Hertz did not return a call for comment.