Bankrupt Hertz granted approval to sell up to $1 billion in shares

in LeoFinance4 years ago (edited)

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https://www.cnbc.com/quotes/?symbol=HTZ

Bankrupt Hertz granted approval to sell up to $1 billion in shares

Hertz was granted approval Friday by the U.S. Bankruptcy Court for the District of Delaware to sell up to $1 billion in stock.

The potential sale is highly unusual for a company going through Chapter 11 bankruptcy proceedings since common shareholders, who are last in line when assets are allocated during court proceedings, may be left with worthless stock.

Last month, Hertz filed for Chapter 11 bankruptcy. Four weeks later, it is considering selling $ 1 billion of new shares.

The car rental giant is asking the bankruptcy judge to let it take advantage of a quixotic surge in its stock after a two-week rally.

Shareholders of insolvent companies are usually wiped out, and Hertz says it will warn any potential buyers that "common stock may eventually become worthless."

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It's almost laughable how fucked up and broken the system is.

Legal wealth transfer from the poor, to the pockets of the rich.

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Yes, the capitalism system is broken, the economy down "ultra rich people have to pay more taxes and use that taxes to make them productive."