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Why would it be illegal? Hertz was in bankruptcy because it couldnt pay its debts, a capital injection might have raised enough cash to pay off its debts and e
by djbebs 6y ago
Why would it be illegal?
Hertz was in bankruptcy because it couldnt pay its debts, a capital injection might have raised enough cash to pay off its debts and exit the bankruptcy proceedings.
They disclosed the low likelyhood of such a thing happening but its not the law or the SECs job to make everyone take wise financial decisions.
- xur17 6y ago> Hertz was in bankruptcy because it couldnt pay its debts, a capital injection might have raised enough cash to pay off its debts and exit the bankruptcy proceedings. While I do agree that it shouldn't be illegal, wouldn't they know how much money they would raise, and hence be able to determine if the capital raise would provide sufficient capital?
- geoduck14 6y agoIf they need to raise $1000, and you but $10 - no one knows if your investment is worthless until after no one buys the additional $990