Hertz Files for Bankruptcy, Somehow Accumulated $17 Billion in Debt

Niraj Chokshi, reporting for The New York Times:

Though it had piled up $17 billion in debt, Hertz, which also owns the Dollar and Thrifty brands, was reporting healthy sales at the start 2020. The company’s revenue rose 6 percent in January and February.

How in the world does it make sense for a company in a low-margin, long-established business with financials like this to rack up $17 billion in debt? When times were good this amount of debt would consume decades of Hertz’s profits. This is bananas.

★ Saturday, 23 May 2020