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Hertz’s Cash Stockpile Can’t Quell All Queries About Liquidity
- Spotlight falls on canceled bond redemption, credit-line draw
- Auto renter says it’s waiting to see results of peak season
Hertz Global Holdings Rental Location Ahead Of Earnings Figures
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Hertz Global Holdings Inc. says it’s got all the cash it needs. Some analysts and investors are asking why the company is acting like it doesn’t.
The question lingers even after Hertz delivered a second-quarter report that sent the stock soaring more than 30 percent in three days last week. Analysts were puzzled by the car renter’s decision to abruptly cancel a bond redemption and draw down its revolving credit line. Executives have said there’s no shortage of liquidity; they’re just waiting to see how their crucial high season is going before deciding how to deploy it.