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Hertz file for bankruptcy – CNN

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How the pandemic is changing the way we fly

The company has been renting cars since 1918, when it founded a store with a dozen Ford Model Ts, and has survived the Great Depression, a virtual halt to US car production during World War II and various oil price shocks. By declaring bankruptcy, Hertz said it intends to stay in business while restructuring its debt and creating a financially healthier company.

“The impact of Covid-19 on sudden and dramatic travel demand has led to a decline in corporate revenues and bookings in the future,” the company statement said. It said meanwhile action was too fast in responding to the crisis, “uncertainty remains about when revenue will return and when the used car market will fully reopen for sales, which requires action today.”

This filing is arguably the highest bankruptcy profile of the Covid-19 crisis, which has driven bankruptcy by national retailers such as JCPenney, Neiman Marcus and J. Crew, along with several energy companies such as Whiting Petroleum and Diamond Offshore Drilling. But no company that has proposed so far has a large share of their industry as does Hertz, which along with its rivals Avis Budget (CAR) and the privately owned Enterprise dominates the rental car industry

The entire rental car industry has been devastated by a downturn in travel since the pandemic struck earlier this year. Nearly two-thirds of its revenue comes from rentals at airport locations, and air travel has fallen sharply. Since early April, the number of people who passed the TSA checkpoint at US airports has dropped 94% compared to last year.

Filing bankruptcy does not mean the company will be forced out of business. Many companies have gone through the process and continue to record profits, including car makers General machine (GM) and many national airlines. But many companies that have filed for bankruptcy with the intention of staying in business have not survived the process.

Hertz said the bankruptcy process would give him “a stronger financial structure that puts the company’s best position for the future while navigating what could be a long journey and an overall global economic recovery.”

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The deep cuts are in place

The company rents out cars under the Hertz, Dollar, Thrifty and Firefly brands, discount brands outside the United States.

The company has made deep cuts to stem losses. This has told 12,000 employees in North America that they lost their jobs, and another 4,000 leave. The US workforce stood at 38,000 employees at the beginning of the year, with around a quarter of them represented by unions.

Hertz (HTZ) The stock closed down 7.5% on Friday and has fallen 82% so far this year. Stocks moved sharply lower in after-hour trading late Friday. Stocks tend to be worthless as part of the bankruptcy process.
Hertz missed payments on April 27, which was due to a group of lenders who rent out vehicles in the Hertz US daily rental fleet. The lender extended the grace period for repayment until 22 May “to engage in discussion … with the aim of developing a financing strategy and structure that better reflects the economic impact of the global Covid-19 pandemic and Hertz’s ongoing operations and financing requirements.”

The company has a total of 568,000 vehicles and 12,400 company locations and franchises worldwide earlier this year. About one third of these locations are at airports.

Most of Hertz’s nonairport business is renting cars to people whose vehicles are repaired after an accident. But with so many people out of work or working from home, miles traveled and the number of car accidents has dropped significantly. Car insurance voluntarily returns more than $ 7 billion, or between 15% to 25% of the premium, to their customers.

Piling up losses and debt

Hertz posted annual revenue of $ 9.8 billion last year, a company record, and rental car revenue was comparable to rivals Avis Budget Group (CAR). But Hertz had problems that preceded the Covid-19 pandemic. It posted a net loss of $ 58 million in 2019, down from a loss of $ 225 million in 2018. But in the first three years, he lost $ 356 million.

Hertz has $ 18.8 billion in debt on March 31, up $ 1.7 billion from the end of last year. Most of the debt, $ 14.4 billion, is supported by vehicles. That includes debts that were missed in April that triggered the latest crisis. It only had $ 1 billion in cash on the balance sheet at the end of March,

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Storied history

Hertz was founded in Chicago more than a century ago by Walter Jacobs, who sold the company in 1923 to John Hertz, who changed the company’s name and expanded its fleet to 600 cars. He started the country’s first national rental network in 1925 and opened his first airport location at Chicago Midway Airport in 1932.

Hertz already has a number of prominent company owners, including RCA, United Airlines (UAL), and the latest Wade through (F), which sold it to a group of private equity companies in 2005 for $ 5.6 billion. This was published a year later.

Today’s main shareholder is activist investor Carl Icahn, who owns about 38% of the outstanding shares. He continued to increase his ownership in the company until mid-March. The stock, which increased its ownership size by 26%, has lost more than 60% of its value in the two months since its last purchase.

The problem in Hertz and the rental car business as a whole is bad news for world car makers. Car rental companies are usually the main buyers of new cars. Last year they bought 1.7 million US cars, according to Cox Automotive. That’s the same as 10% of US new car purchases.

Hertz has announced it will not buy a new car for the rest of the year, and that he is starting to sell his vehicle as a used car. In early March, he had sold 41,000 cars from the US fleet and 13,000 from the European fleet. But the cessation of used car auctions and the closure of many used and new car dealers have made sales stop completely.

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But it is clear that when used car sales channels return to normal, car rental companies will continue to cut their fleets. Avis Budget said it expected its fleet in America to be reduced by 20% by the end of June, compared to the previous year.

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Thomas Gouveia remains the best Portuguese in the Swiss Challenge

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Thomas Gouveia remains the best Portuguese in the Swiss Challenge

Writing with Lusa

Tournament of the second European circuit.

Thomas Gouveia solidified his status as the best Portuguese in the Swiss Challenge this Saturday by finishing the penultimate day of the second European round robin in a group of 31st placed golfers.

Thomas Gouveia hit the card with 73 shots, one over par on the course, after two birdies (one under par hole) and three bogeys (one over), after making 71 shots in the previous two days for a total of 215.

Thomas Bessa needed 75 hits, three over par and tied for scarecrows, he finished 48th with 218 total, five short of Vitor Lopez, 60th with 223, after today needs 78, with just one bird . to fit five scarecrows and a double scarecrow.

The Swiss Challenge, which concludes on Sunday in Folgensburg, France, is still led by France’s Chung Veon Ko with a total of 206 shots, one short of Denmark’s Martin Simonsen in second place.

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Miguel Oliveira qualified eighth for the Japanese Grand Prix.

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Miguel Oliveira qualified eighth for the Japanese Grand Prix.

Portuguese rider Miguel Oliveira (KTM) qualified this Saturday in eighth position at the Japanese MotoGP Grand Prix, 16th of 20 races of the season, despite a last-minute crash.

The Portuguese from the Austrian brand set his best lap of 1.55.895 minutes, finishing 0.681 seconds behind fastest Spaniard Marc Marquez (Honda). France’s Johann Zarco (Ducati) was second with 0.208 seconds and South African Brad Binder (KTM) was third with 0.323 seconds.

“I had good speed and potential in the second quarter and on this particular lap. [a última], but I was on the floor in the ninth turn. It was a shame, but I have confidence in tomorrow (Sunday),” commented the Portuguese rider in statements released by the KTM team. “It was difficult to prepare for the race, but we’ll see.” [o que vai acontecer]”- concluded Miguel Oliveira.

The Portuguese left the third row of the grid after falling just three minutes before the end of the session, marred by rain that caused a delay of more than an hour and had already forced the cancellation of the third free game. training session, at night. The fall of the Portuguese rider occurred in the third sector of the track, at a time when his results were improving. When 15 minutes of this second qualifying stage (Q2) ended, Oliveira finished in fourth place.

However, several riders were still halfway to the last lap and the Almada rider ended up being overtaken by Spaniards Jorge Martin (Ducati), Brad Binder and Aprilia Spaniards Aleix Espargaro and Maverick Viñales.

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Pole position was won by Marc Marquez 1,071 days after he was the fastest in qualifying for the MotoGP World Championship, namely the 2019 Japanese Grand Prix.

“I am very pleased with the pole position. This morning I felt very strong on the wet track and decided to give it a try. This is very important for us and for the future. Tomorrow, on a dry surface, everything will be different. history,” said the Spanish rider, who has already become world champion eight times.

The rain that hit the Motegi track became a headache for the riders and the organization, which was forced to interrupt the Moto2 qualifying nine minutes before the end and cancel the third free practice in MotoGP.

Traffic on the track only resumed after more than an hour, and the wet track was the cause of several accidents, including that of a Portuguese KTM rider who slid off the pavement without physical consequences.

Johann Zarco’s Ducati was the fastest today, reaching 302 kilometers per hour, while Oliveira’s KTM lost 30 kilometers per hour in a straight line (the maximum speed achieved by the Portuguese was 270 kilometers per hour). Luca Marini’s Ducati was the slowest, reaching 255.9 kilometers per hour, leaving the Italian in 10th place.

Champion and championship leader Fabio Quartararo (Yamaha) of France finished ninth behind Miguel Oliveira, while World Cup runner-up Francesco Bagnaia (Ducati) of Italy finished 12th and last in the second quarter, bringing together the top 10 fastest in free practice and the top two in the first quarter.

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Already the Italian Enea Bastianini (Ducati), the winner of the previous stage in Aragon, remained in Q1, where he fell without physical consequences.

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Arapiraquense makes humorous videos to give Portuguese advice: “You learn and laugh” | alagoas

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Arapiraquense makes humorous videos to give Portuguese advice: "You learn and laugh" |  alagoas

“You learn and you laugh” is how Erivaldo Amancio defines the Portuguese language content he offers online. Born in Arapiraque, Alagoas, he humorously gives advice and answers questions about the Portuguese language.

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Erivaldo has 767k followers on Instagram and over 17.5k followers on YouTube. It all started a year and a half ago when he got scolded in a comment on social media.

Because the swearing contained several grammatical errors, Erivaldo responded by posting a video teaching a “lesson” to the hater.

“It happened more than once. Some of these videos were posted on humorous Instagram profiles. It made me stand out,” he said.

A literature student at the Federal University of Alagoas (Ufal), Erivaldo wants to prepare even more for face-to-face classes when he is near the end of the course. He says the purpose of the profile is to encourage followers to seek out more knowledge.

“Tips on the web are just a seed, the fruit of which can be curiosity about objects,” he explained.

Through social media, Erivaldo responds to his followers’ doubts about the Portuguese language.

Erivaldo’s profile is also in demand by contestants and students preparing for Enem.

“[Os seguidores] it is said to be a very interesting way of learning. Many regret not learning from teachers who use humor in the classroom,” he said.

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