Hertz Global Holdings Inc (HTZ)

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This is what happened: the tax loss credit goes toward the payment of three parties before payment too the forth the common share holder. Let me make a list in priority of payment. The last is a seventy / thirty split
with tax debt proceeding capital expenses too the equity holders.

First of course is the collateralized debt holders “ institutional investors banks and private lenders.

The second is your payables none secured creditors.

The last is the holders of the receivables equity share holders and common share holders.

If the receivables and cash can’t pay the debt and associated tax’s then the assets are diluted. If both the receivables and assets can’t cover the debt and associated tax’s the company will fall into a chapter 7. The previous mentioned would be a chapter 11. The collection of receivables and liquidation of assets. The liquidation of assets seldom cover the associated tax’s on the debt by it self. The common share holder and equity holder take an even stake in the liability based on a 70 / 30 split. Capital raised by the selling of tax credit can only be deployed in the payment of tax’s not the associated wages. An administration salary is an expense while the payment of the tax’s is a credit payable too the common share holder after the salary is paid but before the company itself is paid back for the capital cost out of future revenue.

“Follow the money “