Hz to say, in a U.S. court filing on Friday, voluntarily filed for Chapter 11 reorganization. International work in regions including Europe, Australia and New Zealand is not included in the US proceedings.
The company’s largest shareholder is investor billionaire Carl Icahn, is subject to government orders restricting travel and require citizens to maintain the family. Most of the Hz of income comes from the rental car at the airport, which they have, but the evaporation potential customers to avoid airplane travel.
With nearly$19 billion of debt and about 38 000 employees around the world to the end of 2019, he is one of the largest companies in the withdrawal of this epidemic. Public health crisis also caused a series of bankruptcies or Chapter 11 of the preparatory work of the company depends on the needs of consumers, including retail stores, restaurants and oil and gas companies.
American Airlines has so far avoided a similar fate after accepting billions of dollars of government assistance, an Avenue of Hertz explored without success.
The Estero, Florida, the company that operates the Hertz, Dollar and Thrifty Car Rental, has been negotiating with creditors after skipping significantly of the car lease payments item. Forbearance and waiver agreement missed payment is due January 22. Hertz has about $ 1 billion in cash.
The size of the Hertz lease obligations, with added value of vehicles decline because of the epidemic. In an attempt to appease creditors holding asset-backed securities, the financing of its fleet of more than 500,000 vehicles,Hertz proposed the sale of more than 30,000 vehicles a month by the end of this year in an effort to raise about $ 5 billion, a person familiar with the discussion.
On 16 May, the Committee appointed Executive Paul Stone to replace Catherine in Mali within the slightly CEO. Hertz early laid off about 10,000 employees and above there is substantial doubt its ability to continue to serve as important.
Hertz the plight of the more complex balance sheet, including over $ 1.4 billion of Securitized Debt. The proceeds from these securities the funds for the purchase of the vehicle, and then leased to Hertz to exchange the monthly payment increases the value of the car decreases.
Hertz also have traditional credit, the loans and the bonds conditions that can trigger default on the basis of the missing, those lease payments or the failure to satisfy other conditions, for example, provide a timely manner the operating budget and repay the funds it has borrowed.
Hertz early signal you can avoid bankruptcy, if it received relief from creditors or financial assistance the company and its rivals have asked the United States government. The U.S. Treasury has begun to assist the company as part of an unprecedented 2. $ 3 trillion relief package, passed by Congress and signed into law.
A trade group representative of Hertz, the American Car Rental Association, has asked the General Assembly to do more for the industry by expanding the Cov-relief efforts and to promote new legislation for tourism-related businesses.
Even in epidemics, Hz and colleagues are in financial stress, as the tour transfer to the taxi services, such as Super(Uber. N).
The fight against Uber, Hertz adopted a plan of reorganization designed to modernize the smartphone app and improve the management of its fleet of taxis.
Hertz dates back to 1918, in Walter Jacob, the pioneer of renting a car, set up a company allows customers to temporarily drive a one hit Ford Motor Co. (F-N)Model Ts, according to the company website.