Hertz explained the application for bankruptcy by the fall in revenue in light of the proliferation of SARS-CoV-2. Corporation with more than a century of history have not agreed with creditors to reduce payments by leasing.
Corporation Hertz Global Holdings, providing services for rental cars, and a number of its affiliates in the U.S. and Canada have filed voluntary petitions of reorganization to the court on Affairs about bankruptcy of the United States. The decision is due to the uncertainties in the timing of the recovery of revenue and the full opening of the market of used cars for sales, the report said Hertz, published on Friday, may 22. Required procedures under Chapter 11 of the U.S. Code for bankruptcy will not affect the key operating regions of the Corporation, including Europe, Australia and New Zealand, said Hertz.
The culprit of bankruptcy – coronavirus
The spread of the coronavirus SARS-CoV-2 led to a sharp fall in revenue of the Corporation and the number of the number of orders, the report says. Uncertainty persists despite the fact that the Corporation took immediate measures to protect the health of employees and customers, eliminating all non-essential costs and preserve liquidity.
The company failed to reach agreements with creditors on a long-term reduction in payments on operating leases of vehicles. Available Hertz has 1 billion dollars in cash to support ongoing activities.
Hertz was founded in 1918. By the time of bankruptcy, the brand comprised 10 000 locations in 145 countries.
In 2017 Hertz left Russia after the company “Richmond transport servants” who work under her brand, went bankrupt, reminds Agency RBC.