Hertz Global Holdings (NYSE: HTZ) has finally filed for bankruptcy protection as of this evening following the company being unable to renegotiate debts with its creditors. The company filed for Chapter 11 in Delaware.
The filing applies to the firms operations in both Canada and the US, however it does not cover European and other international operations. Furthermore, it does not cover franchised operations within North America. Within the filing the company blamed travel restrictions as a result of the ongoing coronavirus pandemic for negatively impacting its operation to the point that it had to obtain bankruptcy protection.
The filing enables the company to remain operational while it sorts out its debt obligations and the world slowly returns to pre-pandemic travel levels. All Hertz locations remain open and serving customers, which includes its numerous subsidiaries that include Thrifty, Dollar, Hertz Car Sales, and more. Further, the company currently has $1 billion in cash on hand which will enable it to support ongoing operations.
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Actions taken by Hertz as a result of the pandemic include reduced planned fleet levels, cancellation of vehicle orders, consolidation off-airport retail locations, deferring capital expenditures, and furloughing and laying off a total of 20,000 employees. The measures were not enough however, with the company failing to make payments on its debt obligations in late April.
Hertz Global Holdings last traded at $2.84 on the NYSE during regular trading hours, however it fell to $1.82 in after market trading.
Information for this briefing was found via Hertz Global. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
