Hertz Spurned by Supreme Court Over $320 Million Bond Payout

The US Supreme Court turned away a bid by Hertz Global Holdings Inc. to avoid more than $320 million in payments to bondholders tied to its Covid-era bankruptcy, leaving in place a ruling that favored creditors.

The justices on Monday let stand a federal appeals court decision requiring Hertz to pay so-called make-whole premiums, along with interest at a rate higher than the company argued is allowed under federal bankruptcy law. The Trump administration had urged the court to reject Hertz’s appeal, with US Solicitor General D. John Sauer telling the justices that the lower court reached the correct result. Hertz shares fell as much as 4.4% to $5.41 Monday.