Hertz Strikes Deal With Lenders To Avoid Bankruptcy

The forbearances and waivers give the company until May 22 to “develop a financing strategy and structure that better reflects the economic impact of the Covid-19 global pandemic,” Hertz said in a regulatory filing. The shares briefly erased a decline of as much as 36% and were still down 11% as of 8:55 a.m. Tuesday in New York, before the start of regular trading.

The rental-car company had been talking with some of its creditors about how to ease its burden without going through bankruptcy, and the company was preparing to file for Chapter 11 court protection if needed, according to people with knowledge of the matter, who asked for anonymity to discuss the confidential talks.

MDarringer - 5/5/2020 11:41:34 AM

0 Boost

But Hertz has no employees according to some here and Hertz only exists for rich people who travel according to some here but we'll make sure that's gone in our fascist-socialist new green deal utopia according to some here.

PUGPROUD - 5/5/2020 11:55:41 AM

+1 Boost

Carl Ichan pulls a rabbit out of his hat. Rich he may be but he is a slippery money hungry scoundrel of the first order.

MDarringer - 5/5/2020 12:52:52 PM

-1 Boost

People without money always do their moral indignation dance to tell themselves they are superior to people who make the money flow. It's their bigotry talking.

PUGPROUD - 5/5/2020 1:52:39 PM

+3 Boost

I was on the board of a biotech startup company devoted to developing an important new drug application. The company had sufficient cash which would carry it thru four years of development or to the next round of financing. From nowhere Ichan swooped in forcing three of his cronies on the board with strong armed tactics aimed at swapping the companies cash for TWA junk bonds he was trying to unload. Guy is a ruthless snake with no principles. Never built anything feeding off of the sweat equity others like a cancer to enrich himself.

MDarringer - 5/5/2020 2:01:46 PM

-2 Boost

(1) That's how business works.
(2) And again you're doing your moral bullshit response.

If you are employed by a business rather than being an owner/partner, you have no "sweat equity". In no way were you a victim. You were just an employee.

PUGPROUD - 5/5/2020 2:11:33 PM

+5 Boost

Clearly you have no clue how startups are actually funded and what incentives are offered to employees to join early stage high risk endeavors.

MDarringer - 5/5/2020 2:20:43 PM

-1 Boost

Once again: EMPLOYEE.

If you aren't the owner or partner you're unimportant in a take over. As an employee, you may have a promise of bonuses but you don't have sweat equity because you're just a worker bee who can be fired or who can quit and go work elsewhere.

OWNERS are the ones who can claim sweat equity.

You're letting emotionality let you believe that your opinion based on your hurt feelings are somehow truth, but they aren't.

PUGPROUD - 5/5/2020 3:03:57 PM

+2 Boost

Its not hurt feelings that cause my disgust and mistrust of Carl Ichan its the reality that he is a smart but ruthless parasite with the moral fabric of a drug dealer or human trafficker. In our case his own greed did him in as he failed to read our corporate bylaws and government subsidy agreements. If it looks like a snake, slithers like a snake it is a snake.

ricks0me - 5/5/2020 3:31:27 PM

+1 Boost

PUGPROUD said: From nowhere Ichan swooped in forcing three of his cronies on the board with strong armed tactics aimed at swapping the companies cash for TWA junk bonds he was trying to unload. Guy is a ruthless snake with no principles.

In any company where there is equity issued, Ichan must have found a way to get hold of it. The LEGAL method that he used would be available to anyone that knows how to play the game. I am not saying what he did was ethical but is was legal. Don't hate the player, hate the game !!!

PUGPROUD - 5/5/2020 3:43:24 PM

+1 Boost

I hear ya. Certainly legal... but if you can't hate someone who tried to drive an emerging business out of business, displace employees and stifle development of a life saving drug solely for his own short term financial gain, who can you hate?
Do you not hate the guy or gal with a social disease who knowingly has sex with someone without telling their partner though its perfectly legal? A creep is a creep no matter the game. Just saying...

YoCarFanto - 5/5/2020 3:59:49 PM

+1 Boost

Deal with lenders? No more nissan Armadas?

mre30 - 5/5/2020 11:04:31 PM

0 Boost

Damn...I was looking forward to picking up a 14 month old Nissan Aramada with 8,000 miles for $22,000, to leave at my Park City ski place, from the Hertz-Copart liquidation auction.

I guess they will all still be parked at that gigantic lot 2 miles from the airport in the middle of the industrial park.