by Donald Wood
Last updated: 10:05 AM ET, Fri June 11, 2021
Hertz Global Holdings Inc. is on the road to emerging from Chapter 11 bankruptcy protection after a court confirmed the car rental company's reorganization plan.
According to The Associated Press, Hertz announced Thursday its plan would erase more than $5 billion in debt and provide more than $2.2 billion in liquidity, with the company expected to be out of bankruptcy protection by the end of June.
Bankruptcy court filings showed creditors would be paid in full and existing shareholders will receive more than $1 billion in value. Hertz initially filed for bankruptcy protection in May 2020 as the pandemic ravaged the car rental industry.
The return of Hertz from bankruptcy protection comes as traveler confidence is rising due to a lower number of COVID-19 cases thanks to widespread vaccinations and restrictions being lifted at destinations around the world.
Hertz Global Holdings operates the Hertz, Dollar and Thrifty vehicle rental brands throughout North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia and New Zealand.
During the pandemic, the car rental company introduced Hertz Gold Standard Clean, an enhanced vehicle cleaning and sanitization process that concludes with each vehicle being sealed and certified 'Hertz Standard Gold Clean' before each rental.
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