Hertz on the brink hires bankruptcy attorneys as bills come due, lenders agree to extension
Hertz is reportedly on the brink of bankruptcy after missing hundreds of millions of dollars worth of payments that have come due.
A Southwest Florida economist told WINK News, Hertz is likely making this move in advance of asking a judge for protection from its creditors.
Those creditors expected a big payment Monday that never came.
Hertz had until Monday to either obtain a waiver from its creditors or make a $500 million payment.
John Silvi, Founder of Dynamic Economic Strategy, says, What the filing simply means is that Hertz is looking for some grace period, which I think they will get.
In a new SEC filing, the company says they came to an agreement with lenders, giving them until May 22, to come up with a better financing strategy.
If the rental car giant fails, it will be in default and likely seek bankruptcy.
“They’re not hiding behind a rock here and pretending everything is OK,” Silvi explained “They’re being very proactive and that’s a good thing in economics.”
The New York Post reports Hertz is burning $200 million a month with next to no revenue coming in.
Most of hertz’ fleet of 500,000 cars sit in parking lots waiting for the economy to reopen.
Hertz has asked the Trump administration for a federal bailout but so far no answer.
Former Fort Myers-based Chico’s employees protested Monday after being laid off from the company without severance.
Both Hertz and Chico’s employed more than 1,100 people in Southwest Florida at the start of 2019.
Neither company will say exactly how many local workers they employ now.