Tags: Coronavirus | Travel | hertz | pandemic

Hertz Preparing to File for Bankruptcy as Soon as Friday Night: Report

Hertz Preparing to File for Bankruptcy as Soon as Friday Night: Report
Unused Hertz airport kiosks. (Dreamstime)

Friday, 22 May 2020 06:16 PM

Hertz Global Holdings Inc is preparing to file for bankruptcy as soon as Friday night after failing to reach a standstill agreement with its top lenders, the Wall Street Journal reported, citing people familiar with the matter.

The Estero, Florida-based company, which operates the Hertz, Dollar and Thrifty car-rental brands, had been holding talks with creditors after skipping significant car-lease payments due in April.

Forbearance and waiver agreements on the missed payments were set to expire on Friday.

The company has been dealt a massive blow by the pandemic, and its disruption to the global travel and used-car markets. Earlier this month, it canceled 90% of its new car purchases for the 2020 model year.

The rental-car giant’s decision to curtail orders underscores the ripple effects the COVID-19 crisis is having on the travel business and auto industry. Automakers rely on rental companies to buy about 1.7 million vehicles a year, or about 10% of U.S. auto sales.

Hertz has been belt-tightening and negotiating with creditors to try to navigate the pandemic.

Bloomberg News contributed to this report.

© 2020 Thomson/Reuters. All rights reserved.


   
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Hertz Global Holdings Inc is preparing to file for bankruptcy as soon as Friday night after failing to reach a standstill agreement with its top lenders, the Wall Street Journal reported, citing people familiar with the matter. The Estero, Florida-based company, which...
hertz, pandemic
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2020-16-22
Friday, 22 May 2020 06:16 PM
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