All of Hertz’s businesses globally, including its Hertz, Dollar, Thrifty, Firefly, Hertz Car Sales, and Donlen subsidiaries, would remain open and be able to pay new vendors while their debt is being restructured with their existing vendors.
Carl Icahn, who owned 39% of the company sold his 55.3 million shares at around 72 cents a share, which resulted in a 1.8 billion dollar loss for his investment.
The company estimated in a U.S. Delaware Bankruptcy Court filing it held more than $25.84 billion in assets and owed more than $24.35 billion.
Hertz’s analysis of the U.S. Bankruptcy Code is that the company can’t pay vendors for goods or services provided before the bankruptcy without the Bankruptcy Court’s approval.
They have notified their suppliers in a supplier FAQ. They repeated the intent to pay any bills incurred after the bankruptcy and requested vendors submit future invoices as always. “All invoices for post-petition goods and services should be submitted through the usual Procurement channels. Payments will be processed as usual.”
