Florida’s car rental Hertz files for bankruptcy as pandemic totters tourism industry

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Florida’s car rental Hertz files for bankruptcy as pandemic totters tourism industry

Bonita Springs, Florida-based car rental company, The Hertz Corp., a century-old American multinational firm incorporated on Estero and operating over 10,200 franchisee and corporate locations across the globe, had filed for a Chapter 11 Bankruptcy protection on Friday, as the car rental firm’s tourism-dependent businesses appeared to have hit a blind alley amid the pandemic outbreak which had whacked away a gauge of business activities largely dependent on travel and leisure.

Apart from that, latest move of The Hertz Corp., a subsidiary of Hertz Global Holdings Inc., which had $19 billion in debts alongside 38,000 employees across the globe before the onset of the pandemic outbreak, came against the backdrop of a number of failed negotiations with its creditors to raise fresh financing in order to see through the pandemic outbreak.

Besides, as the Hertz Corp., whose lion-share of revenues comes from the car rentals in airports, has been reeling from forced closures across the world, the Florida-based firm was quoted saying in a statement on Friday that it voluntarily filed for a Chapter 11 bankruptcy protection, nonetheless, the company’s international operating regions such as Europe and Oceania were not involved in the bankruptcy proceedings.

Hertz customers have all but rubbed out as people shun plane travels

As a matter of fact, the Florida-based multinational car-rental firm that operates Dollar, Thrifty car-rentals alongside Hertz and has about $1 billion to date, the largest shareholder of which has been the American billionaire investors Carl Icahn, 84, had been in talks with potential lenders followed by a default in car-lease pay out last month, nonetheless, alongside a growing upheaval in the global aviation industry, Hertz Corp.

had ended up in bankruptcy after failing to secure a bailout package, while analysts said its talks with the creditors were compounded further by its beleaguered balance sheet which reveals more than $14 billion in securitized debts.