Hertz files for Chapter 11 bankruptcy [merged]

[MULTIZ321]

Hertz files for Chapter 11 bankruptcy.

Hertz files for Chapter 11 bankruptcy

This is the latest in a string major retail bankruptcies this month.

www.axios.com

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Richard

 

[billymach4]

Wish I had better news to share.
Used to rent from Hertz.

Hertz files for bankruptcy

Hertz filed for bankruptcy Friday night, the latest victim of the sudden economic downturn sparked by the Covid-19 pandemic.

www.cnn.com

 

[davidvel]

Business as usual. Will negotiate (eliminate lots of) debt, and continue on. Hertz will be renting again just like they have. Vat a country!

 

[simpsontruckdriver]

I personally only rent from Enterprise. Unlike Hertz, Enterprise has plenty of neighborhood locations. And they're cheaper than Hertz. I wish National had more neighborhood locations as I loved picking out my car. Having Enterprise do it has been about 95% good. The only times they picked out a "dud" was one month I did a full-size and got a nice Ford Fusion. The next month, I did a full-size and got a nice (but not as much technical goodies) Chevrolet Malibu. Another time, I selected an intermediate SUV, but it was a Mitsubishi and the legroom was small for me (and anyone else over 5'10").

So, I just choose a full-size pickup and that is more than enough leg room. Another plus is at the end of the year, they give a ton of bonuses, I racked up thousands of points in a few rentals.

TS

 

[pedro47]

This is a very good by Hertz. They can elimnate debt, rental automobile overhead, some locations and employees legally. IMHO.

 

[Makai Guy]

This is a very good by Hertz. They can elimnate debt, rental automobile overhead, some locations and employees legally. IMHO.

But not a good thing for all the other companies they owe money to, some of which are probably hanging on by their fingertips themselves. The ripples in the Covid-19 pool keep expanding.

 

[pedro47]

But not a good thing for all the other companies they owe money to, some of which are probably hanging on by their fingertips themselves. The ripples in the Covid-19 pool keep expanding.

Your observation are correct. Over fifty years ago, I was an employee with a major employer that went bankruptcy . I received 10% of my pay checks after they completed the process. I was not happy. I had a family to support and bills to pay. There were no forgiveness of debt from anyone.

 

[jabberwocky]

The biggest proportion of their liabilities is for vehicle leases and vehicle securitizations. Hertz doesn’t actually own most of their vehicles. They will have about 60 days before the creditors on these leases can repossess the vehicles to resell as used vehicles. Will be hard to run a rental company with so few cars.

 

[Ken555]

Let’s not forget that Hertz also owns Dollar and Thrifty.

If the travel industry is forecasting significant continual reduction in business (and leisure) travel for the next year or three, then I suspect we will find a glut of these cars in the used marketplace. Or, perhaps they will sell them overseas like other countries.

I have had status with Hertz for many years and have rented in many countries with them, but I can’t say they were really any better than any other. The brand is generally well respected in business travel, so I expect some entity will acquire it at some point.


Sent from my iPad using Tapatalk

 

[bobpark56]

My understanding is that the bankruptcy applies only for Hertz USD, not for Hertz in other countries.

 

[am1]

Herts to issue 1 billion in new shares.

 

[easyrider]

Herts to issue 1 billion in new shares.

Isn't that just crazy ? Hertz received court approval to sell $1 billion of junk stock to traders. If they manage to sell it, and I think they will sell most of it, they will end up with about $30 billion in earnings. But Hertz is bankrupt.................. I don't get it.

Bill

 

[Brett]

Isn't that just crazy ? Hertz received court approval to sell $1 billion of junk stock to traders. If they manage to sell it, and I think they will sell most of it, they will end up with about $30 billion in earnings. But Hertz is bankrupt.................. I don't get it.

Bill

yes, strange.
I'm not buying any Hertz stock

 

[sfwilshire]

I often rent from Hertz, but I got a notice to creditors associated with the bankruptcy. No idea what would have flagged me as a creditor. I don't have any prepaid reservations booked. They don't owe me anything that I'm aware of. Maybe the "points" I have in my account from prior rentals? I probably have enough for more than a week's free rental. Anyone else get one of those letters?

Sheila

 

[am1]

Hertz even came out and stated because the virus the stock purchased would most likely become worthless.

 

[Brett]

Hertz has suspended its plan to sell up to $500 million in shares after the SEC voiced concern about the deal and launched a review.

https://www.cnbc.com/2020/06/17/hertz-halts-plan-to-sell-500-million-in-shares-after-sec-review.html