Hertz in Danger of Being Delisted on Stock Exchange
Hertz Global Holdings is in danger of being delisted from the New York Stock Exchange for failure to file its annual report on time.
The car rental giant was notified last week by the NYSE that it did not meet the listing standards after failing to file form 10-K for the year 2014.
In a statement, the company said its failure to do so was resulted from "the ongoing nature of the company's previously announced thorough review and investigation of its internal financial records for fiscal years 2011, 2012 and 2013."
Hertz announced last year that its financial statements for 2011 would need to be restated and should no longer be relied upon, according to a press release. Hertz further disclosed that the planned restatement is due to errors relating to, among other items, the capitalization and timing of depreciation for certain non-fleet assets, allowances for doubtful accounts in Brazil, allowances for uncollectible amounts with respect to renter obligations for damaged vehicles, and restoration obligations at the end of facility leases. It was not due to fraud of any kind.
Hertz said it would also conduct a more thorough review of its financial records for fiscal years 2011, 2012 and 2013. Hertz warned that this review may require it to restate and withdraw reliance on its 2012 and 2013 financial statements as well.
The NYSE gave Hertz until Sept. 17 to meet filing standards.
In a statement, Hertz said "If the company fails to file its SEC Filings by the expiration of any applicable cure period, the NYSE may commence proceedings to delist the Company's common stock. The company believes that it will continue to be listed on the NYSE, but there can be no assurance that the company will be able to file the SEC filings within the initial cure period or any extended cure period."
CNBC noted that Hertz shares have fallen 22 percent since March 20, 2014, when it first disclosed the accounting errors.
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