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If most of the debt is in the cars and the used car marked is dry, why Hertz failed to re-negotiate the loans? Or has they entered bankruptcy to put extra pres
by fpoling 6y ago
If most of the debt is in the cars and the used car marked is dry, why Hertz failed to re-negotiate the loans? Or has they entered bankruptcy to put extra pressure on banks?
- bobthepanda 6y agoBankruptcy is a legally standard way of doing that. Chapter 11 can result in creditors being forced to take losses.
- projektfu 6y agoI assume they’re secured loans, so the lenders would rather repossess the cars in bankruptcy and sell them themselves rather than support unsecured holders. If not secured, I have no idea.
- kube-system 6y agoI'm guessing they probably get very good deals on the debt to begin with, (even a consumer can often get 0% on a single car) but bankruptcy will definitely restructure that debt at a minimum.