May 18, 2020—Hertz has until Friday to come up with $400 million after it entered into an agreement with some of its lenders and holders of its asset-backed securities following a default on its April lease payment, reported Freight Waves.
Hertz expects revenue in April and May to drop 80 percent as a fallout of the coronavirus pandemic, but expects business to recover gradually in June as travel restrictions are lifted.
According to analysts, fewer cars on the road means fewer collisions and up to 50 percent of the rental car company’s business relies on providing cars to customers whose vehicles are in the shop.
And, longer-term, the rental car company has to face competition with ride-sharing companies like Uber and Lyft.
