By: Wolf Richter
Source: Seeking Alpha
Date of Publication: May 25th, 2020
Here come the “bankruptcy-remote special-purpose subsidiaries” and $14.5 billion in rental-vehicle-backed securities. The Chapter 11 bankruptcy filing of Hertz Corporation and its US and Canadian subsidiaries threatens to make a royal mess of used-vehicle wholesale prices. Further valuation pressures and bigger losses for Hertz creditors, the entire rental car industry, and leasing companies that also have to dispose of their vehicles.