Hertz Loses Another CFO

The company has suspended a $1 billion share sale and sought DIP financing. It filed for bankruptcy in May.
Vincent RyanSeptember 29, 2020

Hertz Global Holdings is getting its second chief financial officer since August as the company goes through bankruptcy proceedings.  

The company named Kenny Cheung to replace R. Eric Esper, who resigned after little more than a month in the position. Esper is joining United Natural Foods chief as accounting officer and controlleraccording to a regulatory filingHwas promoted to CFO from chief accounting officer when Jamere Jackson resigned from Hertz in August 

Hertz said Esper will remain with Hertz as chief accounting officer until November 1 

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In June, Hertz announced it was suspending plans to sell up to $500 million in shares of the bankrupt company after the Securities and Exchange Commission said there were possible problems with its disclosures. 

“In this particular situation we have let the company know that we have comments on their disclosure,” SEC Chairman Jay Clayton said at the time. “In most cases when you let a company know that the SEC has comments on their disclosure they do not go forward until those comments are resolved.”   

Hertz had said it was proposing the sale to take advantage of interest in the stock. It also said the share sale would be advantageous to taking on debtor in possession financing (DIP)In the filing, Hertz had said potential investors would likely lose their money. (At the time, Hertz’s $3 billion in bonds were trading at 40 cents on the dollar.) 

In late August the company was reportedly discussing DIP financing with existing creditors and possible outside investors for between $1.1 billion and $1.5 billion. The company filed for bankruptcy on May 22 

Cheung joined Hertz in December 2018. He was previously executive vice president of finance and chief operational finance and restructuring officer 

“Kenny has developed a deep understanding of our business and we’re pleased that he is stepping into this role and expanding his financial leadership responsibilities at this important time as we continue taking steps to best position Hertz for the future,” Hertz Chief Executive Officer Paul Stone said.  

Photo by Michael Siluk/Education Images/Universal Images Group via Getty Images

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