Vehicle rental and leasing giant Hertz will invest $1 billion in purchasing new models; this represents the majority of the $1.65 billion the bankrupt company obtained debtor-in-possession financing.
Recall that at the beginning of the coronavirus crisis, and especially during the first weeks of the March lockdown, the firm saw its revenues drop precipitously - so much so that it filed for bankruptcy protection. In early summer, the company was forced to sell off most of its idle fleet, or nearly 200,000 vehicles.
Now, in addition to the $1 billion it plans to invest in new models, Hertz will also use $800 million for working capital and general business needs.
"This new financing will provide additional financial flexibility as we continue to navigate the pandemic's effects on the travel industry and take steps to best position our business for the future."