Hertz Seeking to Avoid Bankruptcy After Missing Lease Payment, Report Says
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Hertz Seeking to Avoid Bankruptcy After Missing Lease Payment, Report Says:
Quarantines and other recent coronavirus measures have decimated travel, both globally and domestically. Of course, this has a ripple effect on tangential industries, as well, like car rentals. As developments continue, one report claims that a car-rental giant might be facing some big financial issues.
Hertz has failed to make a lease payment and is exploring a possible bankruptcy, The Wall Street Journal reports [$], citing sources familiar with the matter. In a statement to Roadshow, Hertz confirmed its financial situation: "We are reducing expenses, deferring capital expenditures, and adjusting fleet levels and staffing based on the significant decline in travel demand," said a Hertz spokesperson via email. "Importantly, conversations with our lenders are ongoing and we remain in discussions with the US Treasury for support."
[...] According to the WSJ report, Hertz is currently holding $17 billion in debt, an overwhelming majority of which is attributed to car notes on its rental fleet. Hertz, like competitors such as Enterprise, have laid off staff and tried to get the money together to continue operating during these lean times.
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