Car rentals major Hertz Global has filed for bankruptcy as the company failed to reach a deal with creditors in order to survive coronavirus pandemic led lockdowns. Car rentals segment faced over 90 percent decline in business as the business and leisure travel was reduced due to lockdowns announced by various government. Majority of business meetings were conducted online using video conferencing tools. On Friday, Hertz Global filed for Chapter 11 protection in a U.S. bankruptcy court in Delaware.

The US bankruptcy filing didn’t include operations of the company in Europe, Australia and New Zealand. The company management wasn’t able to reach a deal with creditors. At the end of year 2019, Hertz Global had nearly $19 billion in debt. Hertz said that it was currently having $1 billion in cash.

The company is employing close to 38,000 employees and this could be a major setback for the car rentals segment. Aviation companies have received funds from government and European airlines have also reached bailout deals with governments.

The car rentals major runs its service under brand names Hertz, Dollar and Thrifty car rentals. The company has a fleet of nearly 500,000 cars. As a plan to raise funds, Hertz has suggested selling nearly 30,000 vehicles per month.

Last week, Hertz announced that as new CEO Paul Stone to replace Kathryn Marinello. The company recently laid-off 10,000 employees and the company had warned at that time about its dire financial status due to coronavirus-led lockdowns.