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(Justin Sullivan / Getty Images)
SÃO PAULO – Hertz shares plummeted 28.9% at 8:20 am on the premarket (negotiations before the opening of the negotiation session) this Tuesday (5). The move comes after Bloomberg said the car rental company was preparing to file for bankruptcy until this morning if it failed to reach a renegotiation deal.
The Wall Street Journal reported that the company hired consulting firm FTI to advise on the RJ process, should it occur, and to restructure a $ 17 billion debt. The same newspaper published last month that the company would already be studying the order after failing to pay the lease on its vehicle fleet.
The impacts of the Covid-19 pandemic forced quarantine caused revenue from the car rental sector to plummet, which, unlike airlines, was unable to access a US government liquidity injection program. . USA
With a very large and no-demand fleet, the company does not have the liquidity necessary to obtain the debt renegotiations it has been requesting, according to Bloomberg. In March, along with the start of travel restrictions, the rental company started laying off staff to cut costs.
Founded in 1918, the company operated at 12,400 locations worldwide in February. In Brazil, Hertz was acquired by Localiza Rent a Car in 2016 for R $ 337 million.
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