Hertz could not be saved. The American car rental company has declared this Friday bankrupt in the United States after failing to reach an agreement with its creditors, as reported in a statement. Maintains its operations in Europe and Oceania, and those that operate as franchises.
“The impact of COVID-19 on travel demand was sudden and dramatic, causing a sharp decline in company revenue and future bookings,” said Hertz, who also operates subsidiaries Dollar and Thrifty.
Hertz, founded in 1918, becomes the latest victim and the highest profile of the pandemic which has also forced bankruptcy at retailers JCPenney, Neiman Marcus and J.Crew, as well as oil companies Whiting Petroleum and Diamond Offshore Drilling.
The company has been forced to resort to this extreme due to the problems it had been suffering and which intensified during the pandemic. after restrictions on air and land traffic, which has decimated the car rental market.
“Bankruptcy would make Hertz one of the most high-profile corporations” in the United States to be unable to pay its creditors due to the impact of the new coronavirus pandemic, according to the Street The Wall Street Journal ’.
The lenders requested compensation from the company in exchange for a new extension of the terms, but the parties did not reach an agreement, according to the WSJ.
Hertz has approximately $ 19 billion in debt, comprised of $ 4.3 billion in corporate bonds and loans and $ 14.4 billion in vehicle-backed debt.
The company, based in Florida, and whose main shareholder is the company Carl Icahn, which owns 38.94% of the shares, announced on March 11 that it was in contact with its shareholders and directors to develop a financing strategy.