In a company in the midst of coronavirus-caused bankruptcy, where stockholders are likely to be wiped out, there are weird signs of life—worthless stock ticking up, an equity offering. But betting on an undead company is a very bad idea.
Source: “This Is Just F–king Unbelievable!”: Bankrupt Hertz Is a Pandemic Zombie | Vanity Fair
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SO SOU ME
|“It’s one thing for speculators to speculate before the existing Hertz shares get delisted, which the New York Stock Exchange has ordered … It’s quite another for the debtor—Hertz—to take advantage of its own badly misinformed shareholders by attempting to sell them new equity, knowing for sure that stockholders will get wiped out after a plan of reorganization is agreed to, leaving them with nary a sou. It’s easily one of the more cynical financial ploys to come along in a season filled with cynical financial ploys. (And Hertz even admits in its prospectus that the investors in the offering could get wiped out in the bankruptcy.)” Vanity Fair: ‘This Is Just F–king Unbelievable!: Bankrupt Hertz Is a Pandemic Zombie.|
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This is dirty pool!