3 ms·
>If they allow this, the investors who lose their money should be able to sue the SEC for negligence. Why? Hertz is not doing anything dishonest.
by nemothekid 6y ago
>If they allow this, the investors who lose their money should be able to sue the SEC for negligence.
Why? Hertz is not doing anything dishonest.
- vizzah 6y agoThey do. Because their bonds currently trade at ~0.4 of $1. And considering equity owners are the latest who will receive any money following the bankruptcy, they know well they aren't going to raise enough money to even deal with other creditors. And they go and issue another $1bn of a worthless equity because never in the history of financial markets there would been so many idiots who would be buying it in such a frenzy. A little chance though that this cash raise could somehow help them get out of the bankruptcy - sort of "a bailout by the shareholders" - but it's still unlikely.