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Hertz Burning Through Cash, Scrambling to Avoid Bankruptcy

DDG
DDG

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Hertz bankruptcy

Hertz Burning Through Cash, Scrambling to Avoid Bankruptcy

Hertz has received approval from its lenders to continue negotiations and avoid bankruptcy for now. An eleventh-hour reprieve gives the struggling rental-car company more time “develop a financing strategy and structure that better reflects the economic impact” of the coronavirus outbreak. Hertz has until May 22 to present a plan.

The company has been preparing to file for Chapter 11 court protection if needed Bloomberg reports. Travel has slowed down to levels not seen in decades, and rental companies have seen revenue drop by over 80% in March and April.

Hertz has not had access to bailout money from the government and reportedly is burning through about $200 million in cash per month. The car rental company began laying off workers in March and in April it missed substantial lease payments related to its rental cars.

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DDG
DDGhttp://dannydealguru.com
Based in NYC. Points/miles enthusiast for years and actively writing about it for the last 6+ years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

2 COMMENTS

  1. I’m confused from my understanding Hertz has bow applied for bankruptcy. I have an extended 2 month travel coming up in Aug and Im still able to book with ATL Hertz for 2 months. I’m wondering if my reservation would be canceled at some time before travel since they declared bankruptcy and started selling off their cars.

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