If you fail to reorganize your debt and cannot extend the grace period with late payments made to your creditors, the Hertz car rental company could be declared bankrupt in the United States. As the company, which accumulates a debt that exceeds 15.000 million euros, is known, is suffering from the crisis caused by the coronavirus, according to idealist
By Miami Diario Newsroom
The truth is that this renowned company Hertz joins the list of companies with great difficulties in assuming the economic costs in the midst of the crisis due to the coronavirus pandemic. The fall of the tourism sector and business in the US, one of the countries most affected by covid-19, has left this car rental company practically without activity or income.
With the purpose of restructure your debtWithout going bankrupt, the company is in talks with some creditors. Even so, it is preparing to apply for bankruptcy proceedings before the US courts to maintain the activity and gain time to prepare a payment recovery plan.
One thing to consider is that the US government offered a bread of airline bailout which amounts to 50 billion dollars, more than 45.000 million euros to the current exchange, which Hertz and other transport companies have not been able to access.
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La employer of automobile rentals ACRA had requested support from the Government of Donald Trump with aid and stimuli that reach 2,3 billion dollars (more than 2.000 million euros).
However, Hrtz does not have enough liquidity to recover with an economic slowdown like the current one, in addition to a large debt, an overly large fleet and the fall in prices of used cars, which makes it worse than other companies in the sector. like Avis.
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—Hertz (@Hertz) March 20, 2020
It is worth noting that the Florida-based company, although originally founded in Chicago in 1918, operates in 12.400 locations around the world, has already begun to downsize, layoffs that could reach 10.000 employees.
With information of: idealist
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