Car rental company Hertz, which has filed for bankruptcy, said the collapse in air travel amid the pandemic hit its biggest source of rental revenue.
Hertz Global Holdings Inc., the car-rental company, which filed for bankruptcy late Friday, said the collapse in air travel amid the coronavirus pandemic hit its biggest source of rental revenue.devastated our revenue,” Hertz said in a court filing dated Sunday and signed by Jamere Jackson, an executive vice president and chief financial officer of the company.
Hertz, whose counters are common in airports across the globe, said the pandemic not only hit its revenues but also placed “substantial new demands” on its cash. In April, the first full month after the health crisis took hold in the U.S., its global revenue dropped 73% from the same month in the previous year, according to Hertz.in Delaware allows Hertz to keep operating while it forms a plan to pay creditors and turn around the business.
Although the company was able to negotiate a short-term reprieve from creditors until May 22 on some payments, it wasn’t able to work out longer-term agreements and “made the difficult decision to commence these Chapter 11 cases,” Hertz said in the filing. The company has already let go about 14,400 employees, cut spending on marketing and consolidated some outlets, as many of its about half a million rental. It has sufficient funds to finance operations at least through the initial stage of bankruptcy proceedings but may seek additional borrowings as the case progresses, it said.
Hertz’s financial debt load, including $14.7 billion of which relates to vehicle financing activities, is no longer sustainable, according to the filing. With “little hope” of returning to the type of business conditions seen before the outbreak any time soon, that “debt must be restructured,” it said.Get our Boiling Point newsletter for the latest on the power sector, water wars and more — and what they mean for California.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Rental-Car Company Hertz Files for BankruptcyOne of the nation’s largest car-rental companies entered chapter 11 proceedings hoping to survive a drop-off in ground traffic from the pandemic and to avoid a forced liquidation of its vehicle fleet.
Weiterlesen »
Hertz, JCPenney, JCrew join list of businesses filing bankruptcyIn the span of just 2 weeks, some of the best-known brands in America said they were entering Chapter 11 Bankruptcy and closing locations across the country.
Weiterlesen »
'Proud' Kentucky Couple Killed in Car Crash After Leaving Son’s High School GraduationNancy Barnett, 53, and husband Lyndon Barnett, 56, were killed, while their two sons were injured
Weiterlesen »
Want to buy a used car? Rental car companies are offering up some good dealsWith travelers staying close to home and airports turned into virtual ghost towns, rental car companies have taken a huge hit during the coronavirus pandemic. On Friday Hertz, which also operates the Dollar and Thrifty agencies, declared bankruptcy. Industry experts expect the company to sell off a large portion of its fleet.
Weiterlesen »
27 Things That'll Clean And Organize Your Dirty Car Once And For AllGet your ride looking and feeling factory fresh.
Weiterlesen »