That seems like a bit of a simplistic view spurred on by people who don’t know what Chapter 11 is.
It’s not “we don’t have any more money” or “we aren’t making any money”, it’s “we need a little court-mandated breathing room (from our creditors) to change x, y, and z, and then we’ll be ok”.
Well, in this case perhaps. The shareholders may be screwed, but at least it gives them (Hertz as well as shareholders) a fighting chance, rather than just saying “yep, we had a good run” and washing their hands of everything.
> That seems like a bit of a simplistic view spurred on by people who don’t know what Chapter 11 is.
> It’s not “we don’t have any more money” or “we aren’t making any money”, it’s “we need a little court-mandated breathing room (from our creditors) to change x, y, and z, and then we’ll be ok”.
It really depends on which "we" you're talking about:
1. What you said is probably true, from the perspective of the organization itself (which includes its officers).
2. It's almost always false, from the perspective of the current shareholders. They're going to get wiped out.
It’s not “we don’t have any more money” or “we aren’t making any money”, it’s “we need a little court-mandated breathing room (from our creditors) to change x, y, and z, and then we’ll be ok”.