mdbe

I've not been able to log in for a month and get a DE22 error so not surprised.

m907

Hertz names new CEO after Kathryn Marinello resigned following report company was preparing for a possible bankruptcy

rylan

Sky high rental rates over the next several months... seems that Hertz doesn't want to rent cars to anyone so not surprised at all if/when they file for bankruptcy.

LondonElite

Sixt has a market cap of about EUR 2.75bn. The Sixt family has a net worth estimated at about EUR 1.8bn. Hertz has a market cap of about USD 450m. They could very well acquire Hertz, but who would want to do that now? Wait for the company to go bankrupt (if that is where it is going), then cherry-pick the assets that you want. I doubt they'll pick up all of the fleet, but the airport locations would come in handy.

AutoSlash

To acquire the company in a non-bankruptcy scenario would likely mean that you'd need to pick up a good chunk of Hertz's $18B debt. The book value of their assets is significantly higher than their current $450M stock price. Hertz's price-to-book is currently 0.25 so their assets are likely worth at least $1.8B (coincidentally the estimated net worth of the Sixt family). We agree though that if Hertz was forced into liquidation (unlikely as they'd probably reorganize under Chapter 11), that Sixt would likely be a bidder for some of Hertz's airport concessions since those are finite and often tough to secure as a non-incumbent.

LondonElite

I think we are saying the same thing. Obviously no one is interested in acquiring Hertz as a going concern, which sort of highlights the moral hazard issued of Ch11.

bluegrinch

Hertz is in worse shape than I thought. Apparently they have informed SLC officials they may not be able to afford setting up new facilities when the airport expansion opens in September. Seeing as the current parking garage should be closing as the new one opens, it seems Hertz's choices are to either find the funds to move into the new garage, look for cheap land near the airport and become an off-airport vendor, or leave SLC altogether.
https://www.sltrib.com/news/politics...may-help-salt/

sullim4

Should Hertz actually go under liquidation, I could see Sixt buying some of their assets. The brand alone has value with consumers, and their real estate holdings would allow them to gain a larger foothold in the US, particularly at smaller airports which tend to be more profitable per-rental than some of the larger airports with more competition.

I could also see some of Hertz's franchisees looking for a new partner - with Enterprise having such a strong foothold in the off-airport rental market, Sixt might be interested if the partnerships and pricing is right.

Eyenigma

Well. It's the bottom of the ninth. And it's all to play for. 24 hours from now, we should know the fate of the gold gentle giant. Will there be more forbearance? Is 22 May the end of this company? All signs point to bankruptcy, but there will be fortunes made if they can somehow use one of their nine lives to buy some time.

itisme

I have a rental pickup tomorrow in Netherlands. If hertz goes bankrupt tonight I won’t be able to rent it or...?!

RedChili

If it's in the Netherlands, it's presumably a franchisee. I'm picking up from a Hertz franchisee in Sweden this afternoon.

itisme

just called and he said no they are okay as it’s hertz Benelux and all the western/northern Europe hertz should be business as usual.. pfew.

Firstboss

As a President's Circle customer of Hertz it feels sad to see their bankruptcy.

There have been quite a few posters dissatisfied with their rewards loyalty program. While it is true about the reward rentals, the really valuable - and best in business - benefits are with the free upgrades and quality of the cars/options installed at the President's and even the 5 star status levels.

All the rewards accounts don't matter much, the saddest part is the fate of the Hertz employees from whom I have received professional and courteous service in most cases. The same thoughts go to service industry employees around the planet, and the third of the US airline employees after October 1st.

While the global leaders engage in self-destructing policies amid the virus hysteria, all the remote-working crowds who feel adaptable, highly skilled and valuable will be shortly next in line after former flight attendants, baristas, Hertz agents, DJ's and strippers won't have income to buy your products and services.

AutoSlash

Folks should keep in mind that even if they don't get forbearance from their creditors today and are forced into Chapter 11, it's extremely unlikely that they will be going away as a company, and in all likelihood, they will continue on as a company renting cars as usual. Reservations will continue to be serviced, points bookings will be honored and customers will continue to earn and burn points, and for the most part, things from a customer perspective will continue on as usual with little outward sign that anything has gone wrong.

Typically, in these cases, a company in reorganization will get what's known as debtor-in-possession financing which gives them the financial wherewithal to continue to operate while they sort out their finances. Hertz's current stockholders will likely be wiped out, but that probably won't impact business operations.

To put it in simple terms, they are worth more alive than dead, so expect to see someone keep this COVID-19 victim on the ventilator until they can be hopefully nursed back to health.

Firstboss

AutoSlash I hope you are right, but the news stories on the Hertz situation mention a high probability of a forced liquidation of the company after the talks have reached an impasse yesterday. It depends on the decision of the top creditors and their calculations for recovering more funds by selling the fleet even in the depressed auto market

Bloomberg - Hertz talks reach an impasse

New York Post - Hertz on the verge of liquidation. Not a serious news source, but sounds credible

COVID-19 victim is a short way of saying it. The companies, employees, the taxpayers, and the economy are victims of incompetent emotional mismanagement by various governments across the globe