NEW YORK/SINGAPORE: The more than a century old car rental firm Hertz Global Holdings Inc filed for bankruptcy protection on Saturday (May 23) after its business was decimated during the Covid-19 (coronavirus) pandemic and talks with creditors failed to result in much needed relief.
Hertz's board earlier in the day approved the company seeking Chapter 11 protection in a US bankruptcy court in Delaware, according to court records. Its international operating regions including Europe, Australia and New Zealand were not included in the US proceedings, the company said.
The public health crisis has also caused a cascade of bankruptcies or Chapter 11 preparations among companies dependent on consumer demand, including retailers, restaurants and oil and gas firms. The size of Hertz's lease obligations have increased as the value of vehicles declined because of the pandemic. In an attempt to appease creditors holding asset-backed securities that finance its fleet of more than 500,000 vehicles, Hertz has proposed selling more than 30,000 cars a month through the end of the year in an effort to raise around $5 billion, a person familiar with the matter said.
Hertz also has traditional credit lines, loans and bonds with conditions that can trigger defaults based on missing those lease payments or failing to meet other conditions, such as delivering a timely operating budget and reimbursing funds it has borrowed.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
No new Covid-19 cases recorded at Jalan Othman market | New Straits TimesPUTRAJAYA: No new Covid-19 cases were recorded at the Jalan Othman market in Petaling Jaya, Selangor, which was placed under Enhanced Movement Control Order (EMCO).
Read more »
Covid-19 update: 78 new cases, 63 recoveries, one new deathPUTRAJAYA: Malaysia reported 78 more Covid-19 cases on Friday (May 22), bringing the country’s total infections to 7,137.
Read more »
New law in the pipeline to mitigate Covid-19 impact | New Straits TimesKUALA LUMPUR: The government is proposing a new Temporary Implementation Measures law to mitigate the economic, social and industrial impact of Covid-19.
Read more »
Contact tracing being done for Bukit Jalil Covid-19 cases | New Straits TimesPUTRAJAYA: The Health Ministry is carrying out contact tracing for Covid-19 cases following the detection of 35 positive cases at the Bukit Jalil immigration detention centre.
Read more »
Singapore reports nearly 450 new cases, Covid-19 tally nears 30,000A total of 11,207 people have fully recovered while 954 are still in hospital. FMTNews Covid19
Read more »
Singapore reports nearly 450 new cases, Covid-19 tally nears 30,000A total of 11,207 people have fully recovered while 954 are still in hospital. FMTNews Covid19
Read more »