Originally Posted by alarmguy
Exactly, Hertz is not going out of business, Chapter 11 is to protect them from creditors while they restructure. Problem is 19 billion in debt and 1 billion in cash, no business to pay the debt due to the virus.
Hopefully once people start traveling again we will get back to normal. If we dont, it wont only be Hertz, it will be everything associated with travel that crashes.
Expect more..
In a Chapter 11 ALL THE CREDITORS need to agree with what ever plan Hertz comes up with. I have been involved with bankruptcies in my career-creditors can nix the plan and force them in to a Chapter 13.
If the creditors think there is absolutely zero hope-or not even enough assets should they not recover-many will not wait.
A couple of key take-aways-
If a company filing for Chapter 11 opts to propose a reorganization plan, it must be in the best interest of the creditors.
If the debtor does not suggest a program, the creditors may propose one instead.
Exactly, Hertz is not going out of business, Chapter 11 is to protect them from creditors while they restructure. Problem is 19 billion in debt and 1 billion in cash, no business to pay the debt due to the virus.
Hopefully once people start traveling again we will get back to normal. If we dont, it wont only be Hertz, it will be everything associated with travel that crashes.
Expect more..
In a Chapter 11 ALL THE CREDITORS need to agree with what ever plan Hertz comes up with. I have been involved with bankruptcies in my career-creditors can nix the plan and force them in to a Chapter 13.
If the creditors think there is absolutely zero hope-or not even enough assets should they not recover-many will not wait.
A couple of key take-aways-
If a company filing for Chapter 11 opts to propose a reorganization plan, it must be in the best interest of the creditors.
If the debtor does not suggest a program, the creditors may propose one instead.
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