Hertz 2014 Annual Report Download - page 181

Table of Contents
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In June 2015, the Company and/or certain of its subsidiaries obtained extensions of previously obtained waivers under the Senior ABL Facility,
HVF II U.S. Fleet Variable Funding Notes, European Revolving Credit Facility, European Securitization, Hertz-Sponsored Canadian Securitization,
Dollar Thrifty-Sponsored Canadian Securitization, Australian Securitization, U.K. Leveraged Financing, our U.S. Fleet Financing Facility, and
various derivative transactions, in each case through August 31, 2015. Such lenders permanently waived any of the aforementioned events arising
from the failure to file such financial information within the required time periods. The waivers also facilitate the Company filing a comprehensive
annual report on Form 10-K for the period ended December 31, 2014, including audited financial statements of the Company for the year ended
December 31, 2014 and unaudited financial statements of Hertz for the fiscal quarters ending March 31, 2014, June 30, 2014 and September 30,
2014, to satisfy its 2014 financial statement delivery obligations under such facilities. In addition, the lenders under such facilities have waived any
of the aforementioned events that could arise from any restatement of annual and quarterly financial statements previously delivered by the
Company and/or certain of its subsidiaries under such facilities.
For so long as the waivers remain effective, any potential and/or actual defaults and potential amortization events ceased to exist and were
deemed to have been cured for all purposes of the related transaction documents.
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In February 2015, the French Competition Authority issued a Statement of Objections claiming that several car rental companies, including Hertz
and certain of its subsidiaries, violated French competition law by receiving historic market information from twelve French airports relating to the
car rental companies operating at those airports and by engaging in a concerted practice relating to train station surcharges. Hertz believes that it
has valid defenses and intends to vigorously defend against the allegations, but, due to the early stage at which the proceedings are, Hertz is
currently unable to predict the likely outcome of the proceedings or range of reasonably possible losses, which may be material.
In July 2015, Ryanair filed a complaint against Hertz Europe Limited, a subsidiary of the Company, in the High Court of Justice, Queen’s Bench
Division, Commercial Court, Royal Courts of Justice of the United Kingdom alleging breach of contract in connection with Hertz Europe Limited’s
termination of its car hire agreement with Ryanair following a contractual dispute with respect to Ryanair’s agreement to begin using third party
ticket distributors. The complaint seeks damages, interest and costs, together with attorney fees. The Company believes that it has valid and
meritorious defenses and it intends to vigorously defend against these allegations, but litigation is subject to many uncertainties and the outcome
of this matter is not predictable with assurance. It is possible that this matter could be decided unfavorably to the Company, however, the
Company is currently unable to estimate the range of these possible losses in excess of amounts accrued, but they could be material.
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In June 2015, the Company signed a letter of intent for the sale of its HERC France and Spain businesses. The proposed transaction includes 60
locations in France and two in Spain. The proposed transaction is subject to receipt of the requisite works council opinions, the signing of the sale
agreements and obtaining required corporate and regulatory approvals.
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The fair value of the Company's CAR, Inc. equity method investment has been negatively impacted by recent volatility in the markets in China and
other factors. The fair value of the investment at July 9, 2015 using quoted market prices (Level 1) was approximately $710 million.
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Source: HERTZ GLOBAL HOLDINGS INC, 10-K, July 16, 2015 Powered by Morningstar® Document Research℠
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