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> First, Hertz isn't worthless because it has restructured. Hertz has not restructured yet. They filed for Chapter 11 bankruptcy on May 22.
by atombender 6y ago
> First, Hertz isn't worthless because it has restructured.
Hertz has not restructured yet. They filed for Chapter 11 bankruptcy on May 22.
- LatteLazy 6y agoTrue, but chapter 11 means they will restructure and that’s the value you’re buying...
- aembleton 6y agoWhat stops their creditors taking the company? They don't have enough to pay them off.
- sgerenser 6y agoAn extra billion dollars from a stock sale might go a long way in paying off creditors.
- LatteLazy 6y agoWell first, what makes you so sure they don’t have more assets than liabilities? The filed for chapter 11 (restructuring) not chapter 7 (liquidation). And second, even if their liabilities exceed their (physical) assets, creditors are very reluctant to actually liquidate larger businesses. I don’t know exactly why but just looking historically, creditors tend to be much more willing to take a haircut and keep at least parts of the business operational than to demand their full pound of flesh...