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Travel Rental car company Hertz scrambling to avoid bankruptcy amid coronavirus crisis

20:12  05 may  2020
20:12  05 may  2020 Source:   usatoday.com

Car Rental Companies Step up Their Cleaning Protocols Ahead of Summer Travel

  Car Rental Companies Step up Their Cleaning Protocols Ahead of Summer Travel Hertz, Enterprise, Budget, and Avis have increased precautions around disinfection. Travelers who opt for car rentals at this time — perhaps for a long road trip — will find new procedures for reserving a car and increased pr Hertz unveiled a new 15-step “Gold Standard Clean” procedure in its rental cars where vehicles will be marked with a “gold standard” seal across their doors, indicating they've been cleaned. The procedure includes several disinfections, vacuuming, vehicle inspection, and washes.

Rental car company Hertz is making last-minute maneuvers in a bid to avoid Chapter 11 bankruptcy amid an unprecedented slowdown in travel spending.

Hertz has disclosed that it received approval from its lenders to continue negotiations through May 22 to “develop a financing strategy and structure that better reflects the economic impact" of COVID-19.

The move comes amid widespread reports that the company is barreling toward a potential bankruptcy filing.

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  Shifting Gears: Air travel begins to tick up, cheap Corvettes, and more Uber layoffs Hertz, the car-rental giant that's reportedly headed for a potential bankruptcy filing, is offloading some bright yellow Corvettes on the cheap. Kristen Lee reports the sports cars — made exclusively for Hertz's 100th anniversary in 2018 — are for sale at a discount. The company also named a new CEO this week.The TSA has announced five major changes to security screening protocols in order to protect the health of travelers. Temperature checks, however, still aren't happening despite airlines pushing for them. Here are all the changes you can expect if you're flying soon.

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Hertz warned in a public filing that the pandemic has led to "a rapid, sudden and dramatic negative impact" on its business. The company said it has "taken aggressive action to eliminate costs," including a plan announced April 14 to cut about 10,000 jobs.

But the company still "faces significant ongoing operating expenses," including agreements that commit the company to lease more vehicles than it currently needs.

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Hertz is burning through about $200 million in cash per month, Jefferies analyst Hamzah Mazari estimated.

Those losses led to the company failing to make certain lease payments due April 27, which triggered additional interest obligations.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.

This article originally appeared on USA TODAY: Rental car company Hertz scrambling to avoid bankruptcy amid coronavirus crisis

Hertz tanks 25% after filing to sell up to $500 million in potentially 'worthless' stock .
The move comes just after Hertz shares surged nearly 70% Friday when the company won bankruptcy court approval to sell up to $1 billion in new shares. Watch Hertz trade live on Markets Insider.Read more on Business Insider.Shares of Hertz, the bankrupt car-rental company, plunged nearly 25% in early trading to $2.14 per share Monday after it filed to sell up to $500 million in new common stock. The move also comes after Hertz on Friday won bankruptcy court approval to sell up to $1 billion in new stock, capitalizing on the company's recent rally as retail investors pile into the risky shares.

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