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The covid-19 pandemic continues to make victims in the business world. With the collapse of tourism and the car rental business, American Hertz Global Holdings is considering moving forward with an application for creditor protection.
According to Bloomberg, the bankruptcy filing could come as early as Tuesday if the company cannot reach an agreement with creditors to postpone the terms of the debt payment.
The news agency reports that the negotiations are not going well, prompting Hertz to consider appealing to Chapter 11 in United States courts, allowing him to continue the activity and buy time to implement a recovery plan and then close An agreement with creditors. To this end, Hertz hired FTI Consulting, a bankruptcy consultant.
Although the United States has unveiled a $ 50 billion program to support airlines, Hertz has been unable to access the funds available in this package, leaving it in a more fragile position than rival Avis, which reached the crisis. . With a more robust balance.
Hertz does not have enough liquidity to expect a market recovery, despite having started in March to lay off workers. On April 29, the company was unable to repay the first loans, and creditors gave Hertz a deadline to find a solution, which should now go through judicial protection against creditors.
The company was founded in Chicago in 1918 and is present in 12,400 markets.
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