The US car rental company is suffering from the effects of the corona pandemic on global travel. The group is in debt with more than $ 18 billion.
The US car rental company Hertz has filed for bankruptcy protection because of the corona virus crisis. The bankruptcy procedure for restructuring according to Chapter 11 was initiated on Friday, as the more than 100-year-old company announced on the same day.
Its international business – including those in Europe, Australia and New Zealand – would not be included in the US proceedings, it said. Hertz’s earnings had plummeted due to the coronavirus crisis. Much of the revenue is usually from airport car rentals, but is suffering from the collapse of air traffic as a result of the coronavirus pandemic.
Hertz had failed to reach a standstill agreement with its main lenders. The Florida-based company with the Hertz, Dollar and Thrifty brands had missed payments due for a major car lease in April. The group, whose largest shareholder is the multi-billion dollar investor Carl Icahn, is generally suffering from the effects of the coronavirus pandemic on global travel. The company, which has more than $ 18 billion in debt, had already fired thousands of employees.