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ARTICLE · 20 MARCH 2023

Hertz Gets Its Wheels Back In Motion

FTI Consulting
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When COVID-19 put a pause on travel, Hertz was forced to file for bankruptcy to protect its business. In its moment of truth, Hertz enlisted FTI Consulting to support its global restructuring activity.

United StatesInsolvency/Bankruptcy/Re-Structuring
Michael Buenzow
Michael Buenzow
Gina Gutzeit
Gina Gutzeit

When COVID-19 put a pause on travel, Hertz was forced to file for bankruptcy to protect its business. In its moment of truth, Hertz enlisted FTI Consulting to support its global restructuring activity.

Situation

Following the outbreak of COVID-19 and associated travel restrictions, Hertz experienced a severe decline in its global business and mounting liquidity demands, while its vehicle financing structure required significant monthly mark-to-market payments. Despite undertaking various liquidity initiatives, such as reducing vehicle purchase commitments, securing airport concession deferrals and abatements, and implementing furloughs and terminations, Hertz filed for Chapter 11 in May 2020.

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