US, WASHINGTON (ORDO NEWS) — Hertz Global Holdings, one of the world’s leading car rental companies, has filed for reorganization under Chapter 11 of the American Bankruptcy Code. The goal is the desire to strengthen the company’s capital structure after the impact of the global coronavirus crisis.
Voluntary petitions are filed with the Delaware County Bankruptcy Court by the company itself and a number of its divisions in the United States and Canada.
The financial reorganization should provide Hertz with a road to a more solid financial structure, providing the company with the best position in the future in the process of a possible long-term recovery of the global economy and the travel sector. Applying for bankruptcy is not an easy personal process, it can affect many so having the right representation during this time is crucial. Whether businesses are using bankruptcy lawyers in Harrisburg PA or in New York, they need to be assured that they are doing what they can to get through this period of financial trouble.
Hertz’s major international operations, including those in Europe, Australia, and New Zealand, are not included in the bankruptcy court petitions filed on May 22. Hertz rental locations that are franchised and not owned by the company are also not included.
A Hertz statement emphasizes that all of its divisions around the world continue to operate and serve customers. All reservations, promotional offers, vouchers, and loyalty programs, including accrued rewards, are expected to continue to operate.
In early May, it was reported that Hertz Global had hired consultants to prepare for bankruptcy. And a few days ago, on May 18, the corporation announced a change of head. Kathryn Marinello, who has worked at Hertz Global since January 2017, will replace Paul Stone as president and CEO. He has been with the corporation since March 2018, and prior to that appointment, he managed car rental operations in North America.
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