Occidental is hiring Moelis & company to help it restructure. Hertz is doing the same thing. You decide. Is this good or bad?
https://www.autoblog.com/2020/04/24/hertz-rental-car-debt-layoffs-coronavirus/
7 replies (most recent on top)
Bankruptcy is still far away. Still need to take the dividend to 0; still have a $5B credit revolver to draw from; still have some debt swaps they can leverage. They did blow thru $1B+ this quarter. I’d guess the dividend goes to 0 after the next board meeting (today I think). That buys them more time to wait out WTI and a global recovery (good luck). Also gives more time to collect on Land Grant sale and Ghana sale. That will help pay the first wall of debt in October and possible some early 2021.
Can someone please explain to me why VH is still at the helm of OXY? And can someone explain to me why OXY has not filed for bankruptcy to stay alive and relevant? Please? I have never worked for OXY and dont own any stock and never did, but I am a student of org design, restructuring, corporate culture and finance, so, I am watching OXY with great interest. For the life of me, And based on my studies, I dont know why the stockholders of OXY haven’t woke-up. The best scenario for OXY is to sell the company to another, or maybe Buffet completely ... maybe stock holders will get alittle more than they have now ... but there is a sure thing, stockholders, your investment is NOT coming back.
You guys ever scene Office Space? Those consultants are there for one reason. I worked at a company 4 years ago that hired a "consultant company" to assist....and about 30% got their walking papers. Anyway, best of luck to you all.
A coincidence with a end in mind. The end of Oxy as we know it. Break it into pieces, fire sale. At least get rid of multiple layers of middle managers, directors and crowded teams! The new CFO is more like a puppet of ICahn wants. Take all the help from uncle Sam for payroll. Uncle might be buying those toxic bonds anyway. We are just months away from Buffet pulling out of his common stock like he did with the airlines. We will be at the mercy of Icahn.
Did anyone notice Carl Icahn's investment in Hertz and the Moelis & company he hired under Hertz. Suddenly it is being hired under Oxy. Any coincidence? Also, could it show the coldness of the business when decisions to layoff is made. Just putting it out there.
Hertz is a completely different business model and they have plenty of their own problems as they’ve canceled their purchase orders of over five hundred thousand vehicles. There will simply be few car rental companies based on limited air travel and vacation/business destinations. Someone will find value car rentals but Oxy has far too much debt for any viable company to consider kicking the tires so to speak, chapter 7 liquidation is the likely path.
Let me guess this a– kissers will take parachutes, promote themselves, take corner offices in GW and put everyone one peril. smh....