- Hertz filed for bankruptcy Friday night after failing to reach an agreement with lenders, The Wall Street Journal first reported Friday.
- Hertz has around $19 billion in debt, including $4.3 billion in corporate bonds and loans as well as $14.4 billion of debt backed by their vehicles, according to The Journal.
- The car-rental business has been decimated as the pandemic has ground travel to a halt, forcing Hertz’s CEO to resign as the company missed lease payments and laid off 10,000 workers last month.
- Hertz’s stock plunged in after-hours trading following the news.
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Car-rental giant Hertz filed for bankruptcy Friday night after it was unable to reach an agreement with its biggest lenders, The Wall Street Journal first reported.
Hertz filed for Chapter 11 protections in the U.S. Bankruptcy Court in Wilmington, Delaware, making it one of the largest corporate casualties of the coronavirus pandemic’s widespread economic fallout as travel restrictions decimate the rental car industry.
The company did not immediately respond to a request for comment.
Hertz has around $19 billion in debt, which includes roughly $4.3 billion in corporate bonds and loans as well as $14.4 billion of debt backed by the company’s fleet of vehicles, and lenders had asked the company for upfront payment on some of those obligations but couldn’t get it to agree, according to The Journal.
Hertz’s business had already been struggling even before the pandemic as it tried to fend off competition from other rental agencies as well as ride-hailing businesses like Uber and Lyft.