HTZ) wants to take advantage of a stock price spike earlier this week, selling up to $ 1 billion in stocks. “Data-reactid =” 19 “>Hertz Global Holdings Inc. (NYSE: HTZ) wants to take advantage of a peak in its share price recorded earlier this week, selling up to $ 1 billion in stocks.
jumped at $ 5.53. The shares closed at a record low of 56 cents on May 26 after the company declared bankruptcy on May 22. & Nbsp; “Data-reactid =” 21 “> On Monday, the shares of the car rental company jumped to $ 5.53. closed at a record low of 56 cents on May 26 after the company declared bankruptcy on May 22.
According to the Wall Street Journal, Hertz wants a bankruptcy judge to sanction an agreement with Jefferies LLC to allow him to sell $ 246.8 million in unissued shares.
Company lawyers say raising capital through the sale of shares is better than making loans with conditions.
“The recent market prices and trading volumes of Hertz common shares potentially present a unique opportunity,” said the lawyers.
Why is it important
Jared Ellias, professor of law at the University of California, Hastings College of Law, told the WSJ that he had studied hundreds of bankruptcies but had never seen a company try to finance a deal with a stock offer .
The New York Stock Exchange began the process of delisting from Hertz last month. The company has appealed the cancellation notice.
The corporate bonds issued by the car rental company were trading at 40 cents on the dollar, indicating a lack of credit worthiness, the WSJ noted.
Hertz’s shares are expected to sell for more than $ 4 each so it can raise $ 1 billion. On Thursday, its shares closed down 18.25% to $ 2.06.
Hertz Price Action
Hertz shares traded 8.25% to $ 2.23 during the session Thursday.