If you answered "Uber". It's one reason these companies are being hammered. 2/3rds of car rental revenues come from airports.
Company is $19bn in debt, which also really.... Hertz
Which one seems like the less risky option?
Exactly - the European model
(I know you got anxiety reading this. It's a mess)
If they dump all 500k into the market at once, car prices will tank. So they will try and sell around 30k cars a month.
Billionaires aren't fond of burning their own cash to save dying businesses.
Remember Richard Branson crying for help to save Virgin a few weeks ago?
Enter Apollo Global, a private equity firm known for betting on bankruptcies. They started buying up insurance contracts (credit default swaps) on Hertz debt a few months ago.
As bankruptcy risk increases, the value of the insurance goes up.
Usually debt holders and creditors get paid out first. Employees get settled (with protected benefits).
Bailouts are used to "rescue" already wealthy investors, hedge funds and large shareholders
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