Debt and coronavirus push Hertz into bankruptcy protection
Copyright 2020 The Associated Press. All rights reserved
IMAGE DISTRIBUTED FOR HERTZ - Lisette Marchand, a resident coordinator at Montefiore Hospital, picks up her free rental from Hertz in New York City, Saturday, March 28, 2020. Hertz is providing vehicles to New York City healthcare workers to help them get to and from work so they can continue providing critical care to the community during the coronavirus (COVID-19) pandemic. "It gives all of us at Hertz a sense of purpose and pride to lend our support as much as we can during this very difficult time," said Kathryn Marinello, Hertz President and CEO. (Diane Bondareff/AP Images for Hertz)
The Associated Press
Posted at 8:45 PM, May 22, 2020
and last updated2020-05-22 22:45:56-04
Hertz has filed for bankruptcy protection, unable to withstand the coronavirus pandemic that has crippled global travel and with it, the heavily indebted 102-year-old car rental company’s business.
The Florida-based company's lenders were unwilling to grant it another extension on its auto lease debt payments past a Friday deadline, triggering the filing. By the end of March, Hertz had $18.7 billion in debt with only $1 billion of available cash.
Starting in mid-March, the company lost all revenue when travel nearly shut down due to the novel coronavirus. Hertz also has been plagued by management upheaval, naming its fourth CEO in six years on May 18.
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