Hertz starts again: 4 billion for the purchase of a new fleet

Hertz starts again: 4 billion for the purchase of a new fleet
For Hertz, there seems to be a light at the end of the tunnel. The US company, after a very difficult period and following the bankruptcy announced in May, is ready to return to the scene. In the event that all goes well, the merit could be so-called Chapter 11, a rule of the bankruptcy law in force in the United States.

The next step for the company will be to obtain a financing package of $ 4 billion, so you can invest the money to upgrade your rental car fleet. Unfortunately, Hertz has been strongly affected by the coronavirus emergency and, consequently, by the significant decrease in travel that has affected every part of the world.

So, if there is a positive response from the Delaware Bankruptcy Court, the company specialized in car rental will be able to continue its business also during 2021. Due to the worsening financial condition and to recover at least part of the liquidity that would have been used to pay creditors, Hertz - in recent months - has been forced to sell their cars, which were usually used for rental.

One of the decisions taken by the company, which caused more "sensation" in May, was the sale of the iconic Chevrolets Corvette Z06. In that case it was certainly a difficult choice, but equally necessary to try to obtain as many funds as possible, indispensable for the company.

The road to fully recover will be very long and tortuous. However, the $ 4 billion loan could be a key starting point for Hertz to think ahead. Unfortunately, car rental is not the only company in the world of motoring that has been severely hit by the coronavirus emergency.

Just think of the company Garrett Systems, which produces turbochargers, which - as happened with Hertz - had to resort to Chapter 11. Even in that case, it was necessary not to lose heart and start again with a financial restructuring. Garrett has in fact requested a so-called "debtor-in-possession" loan of $ 250 million.

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