- Nov 12, 2012
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Rental car company Hertz files for bankruptcy (Oz, probably pay-walled - google the headline)
Hertz Global Holdings, one of the nation’s largest car-rental companies, filed for bankruptcy protection Friday night in the US, saddled with about $US19 billion ($29 billion) in debt and nearly 700,00 vehicles that have been largely idled because of the coronavirus.
The Florida-based company entered chapter 11 proceedings in the US Bankruptcy Court in Delaware, hoping to survive a drop-off in ground traffic from the pandemic and avoid a forced liquidation of its vehicle fleet.
The company’s collapse marks one of the highest-profile corporate defaults stemming from the pandemic’s impact on air and ground travel, though Hertz also had challenges before the current economic crisis.
Even before the COVID-19 outbreak, Hertz had been struggling with competition from peers including Enterprise Holdings and Avis Budget Group, as well as from ride-hailing services such as Uber Technologies and Lyft. The company lost some $US58 million last year, its fourth consecutive annual net loss.