Coronavirus: Influence on the American car rental company

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Coronavirus: Influence on the American car rental company

The Corona Virus pandemics are causing the remarkable amount of critical consequences for various industries around the world. Consequently, the corona virus updates are also describing an increasing damages on the global production as well as service industries. which raises concern over an economic performance for the global countries due to corona virus pandemic. The 100 years old-Chicago based company, The Hertz Corporation is the leading car rental company founded by the Walter Jacobs. However it was later on sold to John D. Hertz by the year of 1923 with its current headquarter in Florida. “The Hertz Global Holdings” based company secured its place in the list of Fortune 500 in the Forbes with total revenues of 9.5 billion american dollars and assets of 21.3 billion american dollars. which indicates the company’s growth by the year of 2018 according to the world’s most renowned media company “Forbes”. In addition, the company has made its remarkable impact with their multidisciplinary performance in previous years on the global brands with its business in the rental car market.

However, the company has recently filed the bankruptcy chapter 11 due to the remarkable decrease in revenue as well as their future bookings amid Corona Virus pandemic from its United States and Canada by May, 2020. The HTZ (Hertz Global Holdings Inc) filed the Chapter 11 bankruptcy with its existing cash on hand accounting for 1 billion american dollars. In addition, the chapter 11 bankruptcy would give an opportunity to the Hertz’s business organizers to address the debt and asset related issues. Additionally, the company’s results are indicating its previous compensation accounting for 56 million US dollars as a part of financial issues. The Hertz is likely to receive the relaxations towards reforming the company’s debts and adjust itself from the bankruptcy proceedings. Due to which, the company is likely to raise the questions for $19 billion debts with approximately 38,000 associates on globally. Additionally, There are many unaddressed questions observed towards the company’s finances involved in 500,000 vehicles. However, the bankruptcy of Hertz does not include the company’s European, Australian and New Zealand compared to its Canadian and American business. In this sense, it is more likely to forecast that the company would be able to solve the matter with an effective restructuring of $14 billion of securitized debts. The protection from bankruptcy chapter 11 would also likely to give Hertz, the financial relaxations amid Corona virus pandemic. The company would be able to improve its used car prices from efficient management of entire rental business operations. The Hertz had earlier registered its accumulated securities and income before tax accounting for 235 million US dollars in previous years.

However, the issue remains difficult to address due to its huge decline in revenue as well as its future bookings amid corona virus pandemic in the global traveling industry. The company previously laid off more than 10,000 associates and 4000 more due to the  corona virus pandemic. It has given the rise to the requirement of systematic business operations by the experts. The “Carl Icahn” with 39% of Hertz’s shares, more likely to make further investment in the Hertz Global Holdings Inc to secure the company’s business performance. The Hertz have more opportunities to come out from the critical situation amid corona virus pandemic with an effective business management to sustain its position in the global market. The Corona virus has also caused certain amount of critical damages to other global level companies with leading positions in the market. On the other hand, the company’s overall values are also being tested during the situation of Corona Virus in terms of addressing the financial issues more effectively. Which is more likely to increase the company’s business development opportunity. Similarly, the bankruptcy chapter 11 for the HTZ (Hertz Global Holdings Inc) is also being observed in front of the global car rental market. The company’s progressing phase is more likely to strengthen its global business position from utilizing the travel industry with an effective business planing and administration.

The leading Car rental company HTZ (Hertz Global Holdings Inc) has key opportunities to take the advantages from corporate casualty amid Corona Virus pandemic. The pandemic has naturally caused the bankruptcy for Hertz due to the insufficient amount of business in global travel industry. Also, an increasing death tolls in the united states has clarified the likelihood to have its critical impact on the worldwide travelling and tourism industry. As a results, it is feasible to state that the companies are facing the bankruptcy and other critical financial consequences even if its presence on the global market. Therefore, the coming years of worldwide businesses are going to make the business trends and values based on the effective recovery plans amid global issues.