Hertz bankruptcy: Rental car company asks for a loan as it tries to restructure – Roadshow

Hertz plans to maintain promoting its rental fleet off.

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The Hertz chapter ordeal continues, and whereas the rental automobile firm continues to offload used cars at some dirt-cheap prices, it nonetheless wants different sources of money within the meantime.

In line with a Bloomberg report on Tuesday, Hertz filed for debtor-in-possession financing, indicating uneven waters forward. DIP financing comes from collectors who imagine an organization has a stable restoration plan to execute as it really works to restructure. However as a rental automobile firms are reliant on vacationers, the trade’s seemingly in for a dark outlook contemplating the coronavirus pandemic continues unchecked in quite a few components of the world. 

Hertz did not instantly reply to a request for remark.

The submitting indicated the corporate has $1.four billion of money readily available, although income plunged 67% within the second quarter. If there is a smidge of a silver lining, Hertz did say demand has slowly began to get well every month, but it surely’s nowhere close to pre-COVID-19 ranges. Nonetheless, the agency plans to dump one other 182,000 vehicles in its rental fleet. In line with the report, Hertz already offered off 100,000 vehicles because it reached a deal to forgo lease payments on the vehicles’ master lease to save cash amid chapter.

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Sean Szymkowski