Hertz filed for Chapter 11 bankruptcy in 2020 during the COVID-19 travel collapse.
Hertz Global Holdings filed for Chapter 11 protection on May 22, 2020. The company’s rental demand and vehicle resale values fell sharply as the COVID-19 pandemic halted much business and leisure travel.
Hertz operated a large fleet financed through substantial debt and asset-backed arrangements. When revenue collapsed, it struggled to meet obligations connected with its vehicles and other financing. The bankruptcy process allowed the company to reorganize while continuing rental operations.
Hertz emerged from Chapter 11 in June 2021 after raising capital and restructuring its debt. The company’s bankruptcy became unusual because its shares later attracted intense speculative trading by individual investors while the company was still in court proceedings. That market episode did not reverse the bankruptcy itself, but it made the case especially prominent in financial news.