COVID-19 Strikes Again: Hertz Files For Chapter 11 Bankruptcy Protection

As expected, vehicle rental giant Hertz Global Holdings (NYSE: HTZ) filed for Chapter 11 bankruptcy protection on the evening of Friday, May 22. The COVID-19 health crisis dealt Hertz a brutal blow that the company wasn't equipped to absorb.

The Chapter 11 filing was not presented as a step toward the liquidation of the company's assets. Instead, Hertz said that it is taking action to strengthen its capital structure.

Hertz will continue running its business as usual, providing car rentals under brand names such as Hertz, Thrifty, Dollar, Firefly, and more. Employee paychecks are still on tap, supported by $1 billion of remaining cash reserves. The same balance sheet also holds $18.7 billion of long-term debt.

Source Fool.com