Hertz Bankrupt, What this Means for the Used Car Market & Shareholders
Published by : Jeff George - Let's Crush Life
Hertz (HTZ) Filled for chapter 11 bankruptcy late Friday night, we are going to talk about what that means for the used car market and for share holders.
First chapter 11 means they are restructuring the company to continue operations and become profitable again.
Hertz started in 1918 with a fleet of ford model T’s and is the worlds oldest car rental company. Just goes to show that if you are first doesn’t mean you are the best, i’m looking at you Tesla.
Hertz could flood the used car market with over half a million cars that they could sell. In fact they currently have plans to sell 30,000 a month until the end of the year.
The used car market has fallen already, so Hertz cars could put even more stress on it. In fact they are currently selling 2019 Corvette Z06s for a deal right now as Jalopnik reported.
Now what does this mean for share holders?
It means that your stock is more than likely going to be worth zero, as creditors will more than likely get any new shares that are offered and the old stock will become worthless.
A study found that of the 41 publicly traded companies that went bankrupt in 2009 and 2010, shareholders of just four of them got any kind of return at all.
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