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Hertz Global Holdings Inc. is negotiating with its creditors for a loan to bolster operations after months of funding itself during bankruptcy, according to people with knowledge of the talks.

The rental car company is mulling two tentative offers for loans of about $1 billion to $1.5 billion, said one of the people, who asked not to be named discussing the private negotiations. The proposals came from a group of Hertz’s unsecured creditors and a separate set of first-lien creditors, the person said. The offers aren’t yet formal and could fall through as the parties work on the details, the people added.

A representative for Estero, Fla.-based Hertz didn’t immediately respond to a request for comment.

Hertz filed for bankruptcy in May without a customary debtor-in-possession loan already in place, opting instead to rely on a large stockpile of cash on hand. The company first disclosed it would seek a DIP loan in August, after its attempt to raise money by selling potentially worthless shares failed.

Cash Concerns

The company meanwhile has resolved a standoff with lenders over leases on its fleet and benefited from rebounding used-vehicle prices.

Hertz said in a previous filing that it’s looking for new sources of cash. The travel business remains in a deep slump and much of the proceeds from vehicle sales have been going to pay off creditors.

Hertz had sought to avoid raising traditional bankruptcy funding while it negotiated a debt restructuring with asset-backed securities holders who indirectly control the company’s rental car fleet.

The rental firm ultimately agreed to pay the lenders $650 million to cover 2020 lease obligations, an amount that’s likely less than what it would normally owe to cover lease payments and depreciation costs. Even so, weak demand in its core business and pandemic-related uncertainty leaves it in need of more cash.

Revenue fell 67% in the second quarter from a year earlier, leading to a $587 million loss. It had about $1.4 billion of cash as of June 30.

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