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Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: Steve G.
Date: May 22, 2020 04:47PM
no longer in the driver's seat

Hertz stock plunges 30% after report saying bankruptcy filing is imminent
[www.marketwatch.com]

Shares of Hertz Global Holdings Inc. HTZ, -7.49% fell more than 30% in the extended session Friday after The Wall Street Journal reported the car-rental company's bankruptcy could come as early as Friday night. Hertz has failed to reach a deal with top lenders, the newspaper reported, citing people familiar with the matter. Nationwide restrictions on travel put in place to curb the spread of the coronavirus have hit Hertz and other travel-and tourism-related businesses hard, and Hertz has missed debt payments and reportedly had hired advisers to try to negotiate its debt. Shares of Hertz ended the regular trading day down 7.5%.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: deckeda
Date: May 22, 2020 05:23PM
You mean all those sales of rental insurance nearly doubling the cost of the rental somehow weren't enough to pad the bottom line?
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: Michael
Date: May 22, 2020 06:06PM
They're selling their Z06 Corvettes. From their website:

The Hertz 100th Anniversary Corvette Z06 is Available for Purchase

Do You Love Hertz Car Sales and Muscle Cars? Show Your Loyalty With a Pre-Owned Special Hertz Corvette Edition

To celebrate the 100th anniversary of the Hertz brand, a special-edition Corvette model was made available in a few exclusive locations to rent. But now, those used 100th Anniversary Edition Corvette Z06 cars are available to purchase at select stores around the country. With the iconic Hertz yellow tint coat and dual black lines that proudly display the company's color scheme, this special edition Corvette will help you show your appreciation for a brand that's been with you every mile of the way. See if there's a special edition Corvette Z06 near you, and visit Hertz Car Sales today to take a test drive.

Beyond the color scheme, interior stitching and special Hertz badging, this pre-owned special edition of the Corvette Z06 really delivers the goods when it comes to a high-end muscle car. Powered by a supercharged 6.2-liter V-8, the Corvette Z06 delivers an astonishing 650 horsepower with 650 pound-feet of torque, with the car's underpinnings, shocks and suspension system working in perfect harmony to give you that sports-car feel for the road.

Even if your attention is immediately drawn to its impressive output, the 100th Anniversary Edition Corvette Z06 carries a wealth of features you'll like having with you out on the road. A premium Bose® 10-speaker audio system delivers crisp and clear sounds, while Apple CarPlay™ and Android Auto™ allow for easy smartphone connectivity. Your infotainment systems are controlled through a clear and easy to use 8-inch touchscreen.

Only 100 - Hertz 100th Anniversary Edition Corvette Z06 models were made, so the quantities are limited at Hertz Car Sales. If this car is for you, make sure your closest Hertz Car Sales location has one in stock, then come in for a closer look and a test drive!
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: NewtonMP2100
Date: May 22, 2020 06:57PM
....ouch!......that hertz.....



_____________________________________

I reject your reality and substitute my own!
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: raz
Date: May 22, 2020 07:43PM
Quote
deckeda
You mean all those sales of rental insurance nearly doubling the cost of the rental somehow weren't enough to pad the bottom line?

No. It's the $17 Billion debt that they've run up that's killing them. I'm kind of curious how much of that was spent on share buybacks or leveraged buyouts.

[edit] it's up to $21B



--------------

Embarassing myself on the Internet since 1978.



Edited 1 time(s). Last edit at 05/22/2020 07:52PM by raz.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: pdq
Date: May 22, 2020 07:55PM
Quote

Hertz, which has its roots in early 20th century Chicago, was acquired away from Ford Motor Co. F, +0.35% in 2005 by a private-equity group led by Clayton Dubilier & Rice for $5.6 billion and the assumption of about $10 billion of Hertz debt. The deal was financed with a mixture of $2.3 billion in equity and more than $12 billion in debt.

Sounds like vulture capitalism to me.

Oh well. “Creative destruction”, right? At least Carl Icahn is one of the folks taking this one on the chin.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: Ca Bob
Date: May 22, 2020 07:57PM
Quote
NewtonMP2100
....ouch!......that hertz.....

A blast from the past. Back in the late Pleistocene when I was a kid, the unit for frequency was cycles per second. Somewhere along the line, the term Herz was adopted to replace cps. I can remember a letter to the editor in a ham radio magazine which concluded, "believe me, it hertz."
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: C(-)ris
Date: May 22, 2020 10:31PM
They have been gettin hammered by Uber, Lyft, and the cheaper rental compaies. I don't know anyone who uses them on vacations(unless they have status from work). They are always one of the highest priced options.



C(-)ris
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Throwback Thursday Signature:
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: pdq
Date: May 23, 2020 12:23AM
...aaaand it’s done.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: RgrF
Date: May 23, 2020 12:24AM
No longer imminent, another Friday filing by another brand name that was smothered in debt by vulture capitalists, As with most they held off the actual BK until there were no bones left to pick.

Long term employees will pay the price.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: Speedy
Date: May 23, 2020 06:54AM
Quote
Steve G.
Nationwide restrictions on travel put in place to curb the spread of the coronavirus have hit Hertz and other travel-and tourism-related businesses hard

Needs a comma after ‘Nationwide’.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: sekker
Date: May 23, 2020 11:14AM
Quote
C(-)ris
They have been gettin hammered by Uber, Lyft, and the cheaper rental compaies. I don't know anyone who uses them on vacations(unless they have status from work). They are always one of the highest priced options.

Yes, indeed. Their service did not match their higher prices, either.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: pdq
Date: May 24, 2020 11:07AM
Quote
RgrF
No longer imminent, another Friday filing by another brand name that was smothered in debt by vulture capitalists, As with most they held off the actual BK until there were no bones left to pick.

Long term employees will pay the price.

And last year, Hertz CEO made...wait for it...

Quote
Forbes

CEO Kathryn Marinello walked away with $9,138,362 in total compensation.

smiley-shocked003

To be fair, a good chunk was in stock and stock options, so might have made a few million less than that.

On the plus side, 45,000 hapless day traders that were obviously out of the loop held Hertz stock at the time of the announcement.
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: sunfalcon
Date: May 24, 2020 08:34PM
And get ready for 500,000 used cars to hit the US market!!
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Re: Hertz stock plunges 30% after report saying bankruptcy filing is imminent
Posted by: RgrF
Date: May 25, 2020 12:12AM
This is what the Dodger Stadium parking lot has looked like for the past two months, more than Hertz cars will be hitting the market soon.

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