“The impact of Covid-19 on travel demand was so sudden and dramatic, causing an abrupt decline in the company’s revenues and future bookings,” said Hertz in a press release.
The filing does not apply to major regions, including Europe, Australia and New Zealand, where the company also operates.
Earlier, Bloomberg news agency reported on the basis of sources that talks between the car rental company and its creditors about deferred payment had stalled. A deadline expired on Friday.
Hertz ran into problems when both business trips and holidays were canceled due to corona measures. As a result, hardly any cars were rented. The creditors granted Hertz deferral in April for an installment of approximately $ 400 million on lease contracts. At the time, they weren’t too bothered about that, because the price of used cars had fallen by more than 15 percent and they were concerned that they wouldn’t recoup their money in the event of Hertz bankruptcy. Second-hand cars are now worth a bit more and creditors are willing to bet higher.