Hertz Global goes bankrupt

US, WASHINGTON (ORDO NEWS) — The impact of the coronavirus on the transport sector was one of the most tangible. The first carriers to crash beneath it, but other destinations also fell. One of the world’s leading car rental companies, Hertz Global, has hired consultants to prepare for bankruptcy.

True, the pandemic in this situation was more likely to be a catalyst than a cause, experts say: the holding’s debt obligations amount to almost $ 20 billion, and most of the cars are bought on lease. At the same time, the company completed last year with a loss of more than $ 110 million.

In March, Hertz announced that the company began mass layoffs, and on April 29 announced that it had delayed payments related to leased cars. Lenders proposed Hertz to decide by May 4 what the company intends to do next.

Then its CEO Catherine Marinello said that the management of the holding will do everything possible to prevent bankruptcy, but within a week the situation changed.

The news of pre-bankruptcy consultations has become a real cold shower for the remaining Hertz investors. During trading at the postmarket, the company’s share price fell by almost a quarter, and this despite the fact that since the beginning of the year, the value of securities has fallen by more than 80%.

Hertz, originally known as Rent-a-Car Inc., was founded in Chicago in 1918. According to the latest data, in February she managed 12,400 offices around the world.

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