22.05.2020 – 18:32
The company’s fragile finances suffered a severe blow with the arrival of the pandemic
NEW YORK – Hertz is under severe bankruptcy risk. If the rental car giant fails to reach an agreement with the creditors later in the day, it may resort to assisted bankruptcy.
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 had 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 the prices of used cars, which made the value of the fleet drop even further.