According to the latest information relayed by some media, the car rental company Hertz is seeking to benefit from a bankruptcy loan to be able to revive its activity and restore the organization.
Judge Mary Walrath of the Delaware Bankruptcy Court announced the week earlier that Hertz had filed for Chapter 11 protection on May 22 with nearly $ 20 billion in debt.
In the turmoil of events, the company received a notice of delisting from the New York Stock Exchange on May 26.
Hertz would have suspended the liquidation of shares valued at $ 500 million pending the green light from the Securities and Exchange Commission which is responsible for examining the file, knowing that the Holding company had declared in court that it would inform potential buyers that those actions “could ultimately be worthless” once the bankruptcy proceedings are completed. This information is also confirmed by several media.
The Wall Street Journal reported, according to sources familiar with the matter, that Hertz is seeking financial means from major lenders to restore its financial balance. The value of the bankruptcy loan in question is estimated to be around $ 1 billion.
The Coronavirus pandemic has indeed had a heavy impact on the tourism sector and related activities notably transport. Hertz also had to suffer the consequences of the lockdown due to COVID-19. Hertz has, therefore, made a request authorization to sell $ 500 million worth of shares this week to the sec.
However, SEC President Jay Clayton, in his statement to the CNBC, said the commission would have “comments” on the transaction, especially after the released information, and that HERTZ must provide responses in order to conclude on the shares sale operation.
Until today, Hertz has not yet responded to the request for comment.
It should be recalled that the American and the global economy as a whole is experiencing a period of recession that the preventive measures to stop the spread of the Coronavirus pandemic have accentuated.
