Hertz Global Holdings Inc (HTZ)

[Iriule]

The Bankruptcy WON'T be withdrawn - here's why...

Even if it's possible to withdraw the bankruptcy, this requires that the company be solvent - i.e. Assets greater than debts.

The data we have says that Hertz is not solvent.

Debts are trading at less than 100% of value, in fact as little as 40c on the dollar as per Dow Jones/Marketwatch.com (see paragraph 8).

This means that the market believes that there will not be enough money to pay the lenders back - they are expected to get back only 40% of what they loaned. (Note: stockholders usually receive money only after the lenders get all their money, so this implies there will be no value in HTZ stock.)

Also, Hertz spent 4 weeks between April 23 and May 22 trying to restructure itself. But due to the low value of the company and its high debts it was not possible then and it is not possible now, as evidenced by the 40c value of the debt.

DISCLOSURE : I am short at $4.04

Kind regards
Iain R