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Hertz voices “substantial doubt” that it will be able to continue as a going concern

the staff of the Ridgewood blog

 

Paramus NJ, Hertz Global (HTZ) Get Report said there is “substantial doubt” that it will be able to continue as a going concern as the car-rental giant struggles with losses brought on by the economic shutdown from the coronavirus pandemic.

“If our business does not recover quickly and we are unable to successfully restructure our substantial indebtedness, obtain further waivers or forbearance or raise additional capital, there is substantial doubt that we will be able to continue as a going concern,” the car rental giant said in a Securities and Exchange Commission filing.

Hertz said it believed it would save about $2.5 billion annually by taking a series of steps, including laying off staff, reducing capital spending, canceling new orders, and selling excess fleet before the used-car market shut down.

On Monday Hertz reported its first-quarter loss widened to $356 million, or $2.50 a share, from $147 million, or $1.54, in the year-earlier quarter. Adjusted losses came to $1.78 a share.

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