Airport Car Rental Collapse Forces Hertz to Seek Bankruptcy Loan
Airport car rental volumes were nearly wiped out during Hertz's (NYSE: HTZ) second quarter, forcing the rental giant to seek debtor-in-possession financing to survive.
Global revenue tumbled 67% to $832 million after air travel was decimated by the coronavirus pandemic. While it has $1.4 billion in cash, which should let it survive through to Dec. 31, unless travel and tourism rebound and it can get extensions on international car payments from its lenders, which are due to begin after Sept. 30, that money won't be enough to make it through the next 12 months.
As a result, Hertz will pursue new financing schemes, including debtor-in-possession loans and vehicle financing options.
Source Fool.com
