Hertz Shifts Oro into New JV Structure
Jory M. Eisenberg, CFA, FRM: Head of U.S. Special Situations
Todd Duvick, CFA: Head of Autos
Jessica Reiss, J.D.: Head of U.S. Loans Research
Scott Josefsberg, J.D.: Head of U.S. High Yield Research
22 October 2026
- How the Oro joint venture changes the position of Hertz creditors and alters existing collateral protections.
- What the transaction structure reveals about Hertz covenant flexibility and its ability to move assets.
- Why the sequencing of the Oro transfer matters when assessing permitted investments and asset dispositions.
- How the new structure could shape future liability management discussions and capital structure negotiations.
- Where liquidity pressures and upcoming maturities could create the most important risks for creditors.
Executive Summary
Hertz has moved Oro into a joint venture outside its corporate credit group. The structure changes how creditors access value connected with the business.
Covenant flexibility enabled Hertz to execute the transaction within existing documentation. Sequencing was important in determining how asset transfers and ownership changes were treated.
The transaction provides a potential blueprint for further capital structure activity. Meanwhile, creditors must assess how similar moves could reshape their protections.
Liquidity remains an important consideration alongside the implications of the Oro restructuring. Hertz has several potential avenues for managing pressure on its capital structure.
Future negotiations could focus on collateral, covenant protections, and maturity management. However, execution challenges leave meaningful uncertainty around how Hertz addresses its broader pressures.



