$4 billion to spruce up fleet, digging a deeper and deeper hole.
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No matter how you slice it, another wave of covid cases will destroy everyone in the travel sector, not just Hertz.
Don’t forget guys, Avis took out a $750m loan at a high interest payback; once, if ever, the dust settles they will be in serious knee deep c-ap trying to pay that loan back.
Q3 was the first time so far Avis reported a profit and you will all soon find out that Hertz did the same.
Q3 was a great quarter for many businesses, and yes including Hertz that is probably shocking to believe.
But if states begin to shut down again, it doesn’t matter who you are, Hertz, Avis, Marriott, United Airlines, Carnival Cruise Lines; no business is meant to stand taking on less revenue.
The leadership team is scamming its way thru this pandemic. Here are the facts:
- They announced this $4B need for financing to counteract the delisting.
- Awarding bonuses when the company is about to collapse- looting the commissary before the siege.
- A revolving door of top level financial leaders.
- COVID is on the upward trajectory and business and leisure travel is dead for at least another 12 months- no revenue. High fixed costs.
- Stock is now delisted and the shares will be worth at most 40 cents by May 2021.
so $20+ B in debt on less than $4B in revenue. What equation are they looking at they will say the company will survive. This doesn't include the money they owe for services.
With Who and how are they still qualifying for a loan?? I thought you needed credit to take out a loan.
Hertz will never dig out of this hole since most business travelers and foreigners are not traveling. There is very low demand for rental cars.