Article Revival: Hertz in the US Launches New Board of Directors

Bond Issuance Ahead of Peak Season... Betting on Expansion of Revenge Travel Demand

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] The U.S. car rental company Hertz, which emerged from bankruptcy protection and found a new owner, has formed a new board of directors, the Wall Street Journal (WSJ) reported on the 30th (local time).

The executives from the three consortium companies that acquired Hertz (Cetaris Management, Knighthead Capital Management, Apollo Global Management) plan to join Hertz's board of directors.

Gregory Ohara, founder of Cetaris and the new chairman of Hertz's board, said, "Our goal is to compose the board with individuals representing diverse perspectives, including women, minorities, and expatriates."

Chairman Ohara also serves as the chairman of American Express Global Business Travel and vice chairman of Liberty Trip Advisor Holdings, the parent company of the online travel platform TripAdvisor.

The Journal reported that a total of four outside directors, including former Ford CEO Mark Fields, are expected to be appointed.

Earlier, Hertz filed for bankruptcy protection in May last year and entered court supervision after the travel industry was hit hard by the COVID-19 pandemic, causing financial difficulties.

In May of this year, a consortium led by Cetaris Management and Knighthead Capital was selected as the final bidder in the Hertz sale auction.

The travel industry expects a surge in 'revenge travel' demand from consumers who have been unable to travel for a long time since early last year, as economic reopening begins with accelerated vaccination.

Hertz is also betting on increased demand by issuing bonds as a measure to secure additional rental cars ahead of the summer peak season.

This content was produced with the assistance of AI translation services.