According to The Wall Street Journal, the winning bid will pay current shareholders close to $8 a share. Corporate bankruptcies rarely result in a payout for equity investors.
The lenders want to convert their holdings in the bankrupt firm into shares of the reorganized company, which could then be taken public.
The restructuring comes nine months after the car rental company entered chapter 11 proceedings, as travel ground to a halt at the start of the pandemic.
Hertz soared 124% on Friday after it lined up potential debtor-in-possession financing of $US1.65 billion, according to a regulatory filing. Hertz entered a commitment letter for the $US1.65 billion deal, which is not official until it is approved by the bankruptcy court. The court will hold a hearing to review […]
Hertz sold $US29 million shares before the Securities Exchange Commission stopped it from selling more. The car rental company filed for chapter 11 bankruptcy protection in May. It initially intended to sell up to $US500 million in stock, but the SEC questioned the plan. A number of daytraders have been […]
Jefferies analyst Hamzah Mazari suggested that auto dealers such as Avis, CarMax, and AutoNation may be eyeing bankrupt Hertz in a Wednesday note. Shares of Hertz skyrocketed more than 100% in intraday trading Wednesday, before paring some gains. The most obvious way for auto dealers to swoop in on Hertz […]
Morgan Stanley on Monday lowered its base case for Hertz to $US0 from $US2, citing risks of de-listing or a potential liquidity shortfall. The firm’s base case is now equal to its bear case. Morgan Stanley also lowered its bull case for Hertz to $US3 from $US8. The updated price […]
Hertz paused its plan to sell as much as $US500 million in new, high-risk shares on Wednesday after the Securities and Exchange Commission raised concerns with the sale. The offering was “promptly suspended” after discussions with SEC staff, and is “pending further understanding of the nature and timing of the […]
Hertz shares were halted Wednesday morning after the Securities and Exchange Commission revealed issues it had with the company’s planned stock offering. The car-rental chain aims to sell as much as $US500 million worth of stock in a desperate fundraising effort, though it has warned the shares could become worthless […]
US equities erased losses and turned higher on Monday afternoon after the Federal Reserve announced it would begin individual corporate bond purchases. The bond-buying activity comes nearly three months after the central bank first unveiled its lending programs. The March 23 announcement marked a floor for stock prices and fuelled […]
US equities sank on Monday as investors turned less optimistic towards a sharp economic recovery. Fears of a second wave of COVID-19 cases intensified, with Texas and North Carolina reporting record hospitalizations on Saturday. California, Alabama, and Florida notched sharp increases in daily cases. Airline stocks including Delta, United, and […]
Hertz, the bankrupt car-rental company, on Monday filed to sell up to $US500 million in new shares. The stock fell nearly 25% in premarket trading Monday. The move comes just after Hertz shares surged nearly 70% Friday when the company won bankruptcy court approval to sell up to $US1 billion […]
Hertz is looking to raise $US1 billion in a share sale after its bankruptcy, the Wall Street Journal reported Thursday. The car rental company is requesting a bankruptcy judge to approve a deal with Jefferies LLC that would allow it to potentially sell 246.8 million unissued shares. The stock had […]
Insiders at Hertz took advantage of an epic 1,450% rally in the stock to unload shares at levels where Robinhood traders were buying. Despite filing for bankruptcy in late May, and Carl Icahn unloading his entire stake for a $US1.6 billion loss, traders piled into Hertz in late May and […]
Hertz announced Wednesday it received a delisting notice from the New York Stock Exchange on May 26 days after filing for bankruptcy. The car-rental company appealed the notice and requested a hearing to maintain its spot on the exchange. Hertz shares will continue to trade publicly pending the appeal. “There […]
Popular bankruptcy plays Hertz and JCPenney plummeted as much as 38% and 34%, respectively, on Monday as investors secured massive gains. Both stocks recently surged on an unexpected wave of interest from retail traders looking for quick profit amid bankruptcy proceedings. The heavy volatility drove both companies higher over the […]
Hertz missed a lease payment on Monday, The Wall Street Journal reported on Wednesday. The company said its advisers are negotiating with holders and senior lenders of its vehicle finance subsidiary’s notes with the goal of reducing payments temporarily, according to a Wednesday filing. Shares of Hertz fell as much […]