Coronavirus, no creditors agreement: Hertz risks bankruptcy and collapses on Wall Street

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The car rental giant Hertz is preparing to file for bankruptcy. According to reports from the Wall Street Journal, the company has not reached an agreement with creditors and may request Chapter 11 as early as the next few hours. Hertz weighed on the coronavirus that caused the demand for car rental to drop and the prices of used cars to drop, causing its fleet to lose value.Hertz did not honor the $ 400 million payment for its fleet at the end of last month and failed to convince creditors to give it more time to come up with a payment solution. And so today’s deadline is the limit not to be exceeded. Despite $ 17 billion in debt, Hertz started the year with revenues up 6% in January and February. But the coronavirus has caused a sudden drop in demand, causing car rentals to collapse. The picture was then complicated by the drop in used car prices, which caused the value of its fleet to drop.
And after the Wall Street Journal’s rumors about possible bankruptcy soon, Hertz sank on Wall Street. The headlines of the car rental giant lost 43.66% in after hours trading.

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https://www.repubblica.it/economia/2020/05/23/news/coronavirus_manca_accordo_creditori_hertz_rischia_bancarotta_e_crolla_a_wall_street-257420181/

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