Hertz files for bankruptcy

[thieuster]

https://edition.cnn.com/2020/05/22/b...tcy/index.html

Europe, Australia and Nw Zealand are not included according to a Dutch newspaper

[Kris]

It' filed under Chapter 11 so more for protection purposes while they restructure.

The US fleet and operations are financed and run in a different way to the European, Australian and New Zealand operations and it's the US operations that have caused the issues.

European and Australia/New Zealand parts of Hertz are discussing an organisational separation so they can continue trading in their own way.

It will be interesting to see how that goes.

[Montello]

I fear there will be many more dominoes that topple ...

[langdalematt]

Many companies will file, clear their debts and start again. It’s the debts that won’t get paid.

[Happyal]

I fear that it's going to get bad with more and more companies that go the same way. Big brands will be OK, but the smaller ones will go for ever.

[Raffe]

Many companies will file, clear their debts and start again. It’s the debts that won’t get paid.

Under chapter 11, most of the time the debtors together with new investors take over the company and the shareholders are the ones holding the bag.

Debt holders get equity and equity holders get nothing.