Why didnt they have savings for a couple months?

[shortylickens]

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

Seriously though, are they in good with Donald? Cuz thats the only way they can survive this.

 

[skull]

Apparently they did its been a few months and according to the article you posted they still have a billion cash on hand.

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

 

[allisolm]

Apparently they did its been a few months and according to the article you posted they still have a billion cash on hand.

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

I will be the first to admit I know little to nothing about the financial workings of companies such as Hertz, but it is difficult for me to muster up a lot of sympathy for one that has a billion cash on hand, a revenue of 10 billion, and is still declaring bankruptcy. Hopefully they can come out of it okay and continue to operate.

 

[dawp]

no more hertz special mustangs? this makes me sad.

never did it but people did race the gt350h

 

[Jaskalas]

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

It really does not matter how much money you take in, if you spend it all.

 

[shortylickens]

the more I read about this the more it seems they are using bankruptcy in a typical corporate/rich person strategy as a tool to reduce their debt. They arent actually in any real trouble.
Which makes sense cuz our current Cheeto-in-Chief has done it many times himself.

 

[FaaR]

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

What's the chance it involves "paying" "dividends" to "investors" (IE rich stock owner thieves legally stealing out of the company tiller.)

Fairly high, I'd speculate...

 

[GodisanAtheist]

the more I read about this the more it seems they are using bankruptcy in a typical corporate/rich person strategy as a tool to reduce their debt. They arent actually in any real trouble.
Which makes sense cuz our current Cheeto-in-Chief has done it many times himself.

-They're filing Chapter 11 which is the "renegotiate debts" kind of bankruptcy, not Chapter 7 which is the liquidate all assets/dissolve the company kind of bankruptcy. So you're right.

 

[Vic]

$18.8 billion in debt on $9.8 billion gross revenue. Debt service had to be at least a billion/year. Pretty much speaks for itself. Of course, 12 thousand employees lose their jobs, and not the management that over-leveraged the company.

 

[Herr Kutz]

Apparently they did its been a few months and according to the article you posted they still have a billion cash on hand.

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

Wait until you see how much the government takes in and spends.

 

[UNCjigga]

I may have to take a look at the second hand car market this summer. Should be a shit ton of late model mid-mileage vehicles coming off rental lots.

 

[Fenixgoon]

I may have to take a look at the second hand car market this summer. Should be a shit ton of late model mid-mileage vehicles coming off rental lots.

Apparently you can get some dirt cheap Corvettes from Hertz

 

[UNCjigga]

Apparently you can get some dirt cheap Corvettes from Hertz

Meh, not my style. I need something to replace a ‘12 Honda CR-V. My ideal would be a Tesla Y but that’ll have to wait. Would be happy to settle for a new Ford Escape, Hyundai Tucson or VW Tiguan.

 

[Jhhnn]

$18.8 billion in debt on $9.8 billion gross revenue. Debt service had to be at least a billion/year. Pretty much speaks for itself. Of course, 12 thousand employees lose their jobs, and not the management that over-leveraged the company.

We were at the ready to crumple phase of a giant credit bubble in corporate debt before the virus showed up. It was evident in the bond market & the repo market last September. You could have pushed it over with a feather but it got a steel toed nut kick instead.

 

[chowderhead]

Apparently they did its been a few months and according to the article you posted they still have a billion cash on hand.

Also haven't been making a profit for a couple years, I don't understand how a company can bring in almost 10 billion dollars and lose 58 million.

Basically, these companies (Toys R Us, J Crew, Neiman Marcus, Hertz, etc) were purchased by private equity companies in leveraged buyouts. These equity companies borrow large amounts of money to purchase other companies and put up the assets of the companies they are buying as collateral. Banks are apparently allowed to lend money to companies on assets they don’t yet own.

They load up the companies with debt and extract the profits while forcing these companies to service the heavy debt. These leveraged companies are the first to go because they have heavy debt. It is an insane system and the employees get screwed.

 

[darkswordsman17]

I may have to take a look at the second hand car market this summer. Should be a shit ton of late model mid-mileage vehicles coming off rental lots.

If you have an old car worth not a lot to trade in, wait for cash for clunkers to be brought back. If you're looking for used then wait for the used market to keep going down and get ahead of cash for clunkers since that's going to make older POS suddenly worth a decent amount on trade-in and so will drive up prices on used (it'll also remove a lot of used cars from the market).

Apparently you can get some dirt cheap Corvettes from Hertz

The ones I saw were still like $60K C7s (not sure if they were Z06 or anything) so not what I'd call dirt cheap. Also, I'd be weary of buying used sports cars from car rental places (although they might still be in good shape).

Meh, not my style. I need something to replace a ‘12 Honda CR-V. My ideal would be a Tesla Y but that’ll have to wait. Would be happy to settle for a new Ford Escape, Hyundai Tucson or VW Tiguan.

Oh, in that case I say get to looking as I think you'll do better to get ahead of cash for clunkers program that is almost certainly on the way.

 

[Herr Kutz]

Meh, not my style. I need something to replace a ‘12 Honda CR-V. My ideal would be a Tesla Y but that’ll have to wait. Would be happy to settle for a new Ford Escape, Hyundai Tucson or VW Tiguan.

Why replace the crv? The 2012 crv will probably outlast a 2020/2021 Escape/Tucson/Tiguan.