Debt and coronavirus push Hertz into bankruptcy protection
Published : Saturday, 23 May, 2020 at 11:23 PM Count : 349
Hertz filed for bankruptcy protection on Friday, failing to cope with a coronavirus epidemic that has crippled worldwide travel and, with it, the business of a 102-year-old car rental company.
The Florida-based company’s donors refused to give it one more extension in terms of providing auto lease debt before Friday’s deadline, filing a lawsuit in U.S. bankruptcy court in Delaware.
Hertz and its affiliates will continue to work, the company said in a statement. Hertz's major international operating regions and franchised locations were not included, the statement said.
By the end of March, Hertz Global Holdings Inc. had racked up $18.7 billion in debt with only $1 billion of available cash.
Since mid-March, the company - whose car rental bands have included dollars and tripods - has lost all revenue since the novel was shut down due to coronavirus, and it began missing payments in April. Hertz has also been plagued by management issues, naming the fourth CEO on May 16 as May 16 in six years.
"No business is built on zero earnings," former chief executive Catherine Marinello told the company's first-quarter earnings conference on May 12. Will carry the reserves of the companies for such a long time. "
By the end of March, Hertz had laid off 12,000 employees and pushed another 4,000 to Fallu, reducing car acquisitions by 90% and cutting off all unreasonable spending. The agency said the measures would save 2.5 2.5 million per year.
Walter L. Jacobs, 19 Jacob, set sail for Chicago with a fleet of a dozen Ford Model TSs in Chicago, it was too late to save Hertz. Jacobs first hired John D. Hartz in 1923 to rent-a-car Inc. Sold this company known as.
In a note to investors in late April, Jefferies analyst Hamzah Mazari predicted that rival Avis would survive the coronavirus crisis, but Hertz had only a 50-50 chance of "slowing down spending."
On May 18, Hertz took an unusual step by naming Operations Chief Paul Stone as CEO and announcing that Marinello would resign from the CEO and board of the company. Mazari called the change "unusual" just days before the possible bankruptcy filing. He added that changes to Hertz's CEO have been common since the company was joined by financier Carl Ikahan in 2014.-Internet