Hertz can't pay interest on $17 billion in debt, lays off 10,000

Varmint

NES Member
Rating - 100%
9   0   0
Joined
Jul 5, 2014
Messages
14,107
Likes
6,111
Location
North Shore, MA
Just one example of what's coming. Hertz stock is down 75%, now valued at half a billion, and they have $17 billion in debt, which they had before anyone heard of Covid-19.

They want a bailout. As if the virus made them build up all that debt. And they'll get their bailout, cause billionaire Carl Icahn is their top shareholder.

Just remember, the purpose of a corporate bailout is to protect shareholders, not workers or pensions, which are usually protected by bankruptcy.

 

PennyPincher

NES Member
Rating - 100%
12   0   0
Joined
Aug 27, 2007
Messages
12,860
Likes
5,672
Location
Texas
JCPenney missed a debt payment not long ago. Of course, they have been on the ropes for years. So this was just one more straw when they had to close their S&B locations.
 
Rating - 100%
7   0   0
Joined
Sep 18, 2010
Messages
22,286
Likes
13,381
Location
Suckachusetts
Just one example of what's coming. Hertz stock is down 75%, now valued at half a billion, and they have $17 billion in debt, which they had before anyone heard of Covid-19.

They want a bailout. As if the virus made them build up all that debt. And they'll get their bailout, cause billionaire Carl Icahn is their top shareholder.

Just remember, the purpose of a corporate bailout is to protect shareholders, not workers or pensions, which are usually protected by bankruptcy.

Become a shareholder and benefit from your tax dollars bailing them out.
 

Lank

NES Member
Rating - 0%
0   0   0
Joined
Nov 11, 2009
Messages
4,433
Likes
1,195
Location
Run to the hills
Just one example of what's coming. Hertz stock is down 75%, now valued at half a billion, and they have $17 billion in debt, which they had before anyone heard of Covid-19.

They want a bailout. As if the virus made them build up all that debt. And they'll get their bailout, cause billionaire Carl Icahn is their top shareholder.

Just remember, the purpose of a corporate bailout is to protect shareholders, not workers or pensions, which are usually protected by bankruptcy.

All of these bailouts will snowball into a huge mountain of suck. We need to get back to capitalism
 

Varmint

NES Member
Rating - 100%
9   0   0
Joined
Jul 5, 2014
Messages
14,107
Likes
6,111
Location
North Shore, MA
How is Uber destroying car rentals?
Lot of people might travel to say, Florida, and instead of renting a car, they just Uber everywhere.

Regardless of Uber, I don't think car rental is ever gonna be a profitable business.

Now if you let all the bad companies go bankrupt - then the survivors would be better off. Free market does actually work.
 
Rating - 100%
7   0   0
Joined
Sep 18, 2010
Messages
22,286
Likes
13,381
Location
Suckachusetts
Lot of people might travel to say, Florida, and instead of renting a car, they just Uber everywhere.

Regardless of Uber, I don't think car rental is ever gonna be a profitable business.

Now if you let all the bad companies go bankrupt - then the survivors would be better off. Free market does actually work.
Maybe, but Uber is too expensive for that. A 30min trip and it already cost you the rental fee.

But maybe people dont mind spending a ton on Ubers.
 

ReluctantDecoy

NES Member
Rating - 0%
0   0   0
Joined
Oct 17, 2017
Messages
1,972
Likes
1,676
Location
Cambridge, MA
Just one example of what's coming. Hertz stock is down 75%, now valued at half a billion, and they have $17 billion in debt, which they had before anyone heard of Covid-19.

They want a bailout. As if the virus made them build up all that debt. And they'll get their bailout, cause billionaire Carl Icahn is their top shareholder.

Just remember, the purpose of a corporate bailout is to protect shareholders, not workers or pensions, which are usually protected by bankruptcy.

That's standard operations for car rental agencies. They don't own the cars outright. At least not the newer ones. They make money off the difference between their rental fees and the expense of the dept service. By the time they may be getting close to owning the vehicle, they liquidate it, essentially removing the note from the fleet freeing up more credit for a new car. So the dept itself isn't surprising. Just bad timing on a fleet expansion.
 

Zappa

Road Warrior
NES Member
Rating - 100%
27   0   0
Joined
May 14, 2008
Messages
46,252
Likes
18,443
Location
Living Free In The 603
How is Uber destroying car rentals?
Good question^

A lot of the cars being used by Uber and Lyft drivers are actually rental cars.
I towed a new car one night from an accident, the guy was driving for Lyft, he told me the car was a rental.
He explained that Lyft will arrange for you to get a rental through them, even if you have bad credit.
The rate the driver pays is based on how many Lyft jobs they do per week.
The more jobs you do, the less you pay Lyft for the rental.
 

Varmint

NES Member
Rating - 100%
9   0   0
Joined
Jul 5, 2014
Messages
14,107
Likes
6,111
Location
North Shore, MA
Good question^

A lot of the cars being used by Uber and Lyft drivers are actually rental cars.
I towed a new car one night from an accident, the guy was driving for Lyft, he told me the car was a rental.
He explained that Lyft will arrange for you to get a rental through them, even if you have bad credit.
The rate the driver pays is based on how many Lyft jobs they do per week.
The more jobs you do, the less you pay Lyft for the rental.
That sounds sustainable.

I wonder how Uber is doing right now with no business and massive debt?
 

Zappa

Road Warrior
NES Member
Rating - 100%
27   0   0
Joined
May 14, 2008
Messages
46,252
Likes
18,443
Location
Living Free In The 603
It's no secret that rental car companies are screwed right now, this subject was already discussed recently in another thread.
They have no place to even park all the unused cars, they have to rent space elsewhere to store them:


 

Varmint

NES Member
Rating - 100%
9   0   0
Joined
Jul 5, 2014
Messages
14,107
Likes
6,111
Location
North Shore, MA
It's no secret that rental car companies are screwed right now, this subject was already discussed recently in another thread.
They have no place to even park all the unused cars, they have to rent space elsewhere to store them:


Maybe they can tape up the vents and fill the cars with oil? Two birds with one stone.
 

new guy

NES Member
Rating - 100%
58   0   0
Joined
Dec 7, 2009
Messages
23,082
Likes
19,716
Maybe they can tape up the vents and fill the cars with oil? Two birds with one stone.
I'm still waiting for BP/Transocean to announce their new storage facility on the seabed under their Deepwater Horizon rig.
 

bfm

Rating - 100%
14   0   0
Joined
Nov 19, 2007
Messages
7,196
Likes
5,013
Location
Somerville
That sounds sustainable.

I wonder how Uber is doing right now with no business and massive debt?
They have a lot of business, they do food delivery as well, which is way up.

But they still lose more money than most companies make every single year.
 
Rating - 0%
0   0   0
Joined
Apr 4, 2020
Messages
6
Likes
5
Rentals are a RIP off. They want you to buy their insurance and try to scare you off when you say I've got my own
 
Top Bottom