The company’s most obvious avenue for raising cash would be to sell down parts of its rental car fleet, which numbers above 560,000 cars in the U.S., not counting its international operations. (Autoweek)
Aman's key takeaways:
- Hertz needs to find $400M by May 22nd for holders of its asset-backed securities to avoid bankruptcy. Securing bank loans at this time is tough, given the uncertain near-term future of the car rental industry amidst lockdown of air travel and hotels.
- If Hertz decides to sell its rental car fleet at low prices to raise cash, it will adversely impact new car sales in the country.
- Smaller companies like Zoom Car could also come under increasing investor scrutiny, further lowering investor confidence.