Shares of Hertz Global Holdings (NYSE:HTZ), a vehicle rental company trudging through the bankruptcy process, are down another 6% following recent leadership changes and growing cash concerns.
Earlier this week R. Eric Esper resigned from Hertz's CFO position to pursue a new career opportunity, and the vehicle rental company elected to fill his shoes with Kenny K. Cheung. Esper had only recently been promoted in August following his predecessor's resignation to also pursue a new opportunity. The leadership shuffle is a sign of the instability within the company as it continues the bankruptcy process, and keeping leadership will remain difficult. Judge Mary Walrath, who is overseeing Hertz's bankruptcy proceedings, recently told the company it must change its plan to pay top executive bonuses if it wants approval for its $5.4 million incentive program. "It seems offensive to give senior executives bonuses," Walrath said in a hearing held by telephone earlier this month, according to Bloomberg.
Hertz stock has been on a wild ride since the company filed for bankruptcy protection on May 22, including logic-defying pops, drops, and other unprecedented strategies. When Hertz filed for bankruptcy in May the company planned to use its cash reserve to fund operations while negotiations with creditors took place. Hertz is rumored to be seeking loans for over $1 billion, but investors should expect the company's stock to continue its slow and consistent decline.