Century old companies start going down.

Hertz Global Holdings Inc., the car-rental company founded with a dozen Ford Model Ts over a century ago, filed for bankruptcy late Friday after sweeping travel restrictions and the global economic collapse destroyed demand for its vehicles.

https://www.bloomberg.com/amp/news/arti ... d-vanishes

hunter8 wrote: ↑Sat May 23, 2020 3:32 pm Century old companies start going down.

Hertz Global Holdings Inc., the car-rental company founded with a dozen Ford Model Ts over a century ago, filed for bankruptcy late Friday after sweeping travel restrictions and the global economic collapse destroyed demand for its vehicles.

https://www.bloomberg.com/amp/news/arti ... d-vanishes

Is Hertz really that special? They buy loads of cars at a discount and then rent them out at ridiculous prices. Another company will jump in and nobody will remember Hertz.

How much of this filing is to obtain protection from creditors? I understand that the American airline industry were in and out of chapter 11 to dodge creditors and it is an often used tool.

$25.8 billion in assets and $24.4 billion of debts and over a billion is cash does not sound like a bankrupt company to me. It sound like a company trying to protect those numbers and stick it to the government to do something, and fast.

But I take your overall point; there are going to be very large household names that were not in good shape prior to this crisis, but still viable, and will be crushed by it. It will pile more pressure on governments to abandon the lockdowns and let the chips fall where they fall.

Probably nothing special about them except their long track record which proves they have the foresight to see what’s coming. The decision was to file for bankruptcy before everyone else does. And their assets, how liquid are they in the best of times? With no revenue in this unfolding crisis they would go under one way or another pretty soon, what’s the use of sitting on asses waiting for the inevitable.

hunter8 wrote: ↑Sat May 23, 2020 4:19 pm Probably nothing special about them except their long track record which proves they have the foresight to see what’s coming. The decision was to file for bankruptcy before everyone else does. And their assets, how liquid are they in the best of times? With no revenue in this unfolding crisis they would go under one way or another pretty soon, what’s the use of sitting on asses waiting for the inevitable.

Well, the fact they file now raises a lot of questions.

How healthy is Company if it has to file after 8 weeks of trouble?
How come they're not more creative, leasing out part of their fleet to companies currently blossoming (for instance: US Post / other couriers).

Instead, they file for bankruptcy and that's where the chain of bankruptcies starts. Hertz won't pay their bills, other companies suffer, get into liquidity problems and go bust too.

Doc67 wrote: ↑Sat May 23, 2020 3:58 pm$25.8 billion in assets and $24.4 billion of debts and over a billion is cash does not sound like a bankrupt company to me. It sound like a company trying to protect those numbers and stick it to the government to do something, and fast.

when poor and homeless are bankrupt bailouts are evil socialism.

when corporations and bankers want them, its kosher even expected.

why?

because the system needs it's vast army of poor and homeless to keep people working the shit jobs, in order to avoid said circumtance

.
Hertz Files for Bankruptcy

Company will keep operating while it devises a recovery plan

it has more than $1 billion cash on hand.

Hertz said it has enough cash for now to support its operations,

The company began laying off workers to preserve cash in March


Sounds like CEO's and Directors, Executors, hanging in there till the bitter end... If a company declares itself bankrupt a Liquidator would be appointed to manage the company and assets , not left in the control of the people that put the company in that position in the first place.

From a linked article:
"Hertz Runs Into Cash Crunch After Years of Management Tumult"
“Even though they just finished a record year and things were looking fine, they were still operating on a razor-thin cushion of liquidity.”
Etc: https://www.bloomberg.com/news/articles ... ent-tumult