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Hertz Says Survival Tied to Reducing Fleet to Fit New Normal

  • Bankruptcy will focus on selling rental cars, reducing debt
  • Hertz debt may grow by $1 billion as idle autos lose value
Hertz Gets Lenders' Forbearance In Bid To Avert Bankruptcy
Photographer: David Paul Morris/Bloomberg

Hertz Corp. will sell as many of its rental cars as possible while in bankruptcy to bring its huge fleet in line with reduced future demand in a post-pandemic economy, the company’s lead bankruptcy lawyer said during a court hearing Wednesday.

The company must figure out how many of the 730,000 autos it controls to keep and how much debt that fleet can support, bankruptcy attorney Thomas Lauria said during a court hearing conducted by video and telephone. When the Covid-19 pandemic hit, all the prediction models the company uses to run its business failed, Lauria said.