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It already has gone to zero. The bankruptcy proceedings wrote off all of the old stock and issued an entirely new set of shares, mostly to the debt holders. (

It already has gone to zero. The bankruptcy proceedings wrote off all of the old stock and issued an entirely new set of shares, mostly to the debt holders. (I cannot reply to your response when you edit so often... looks like it resets an anti-spam timer or something) The proceedings behind a deal at this scale are so private that it is rare to see major salient revisions after a public announcement like this. Nevertheless, I concede the point that it isn't completely final. Presumably they'll be de-listed once that actually happens.

dragontamer 6y ago
Bankruptcy proceedings are still taking place and are not finalized. HTZGQ will probably go to zero soon, as what you say is almost certainly going to happen. https://www.prnewswire.com/news-releases/hertz-global-holdings-reaches-key-milestone-in-restructuring-files-plan-of-reorganization-and-disclosure-statement-301238331.html https://www.prnewswire.com/news-releases/hertz-global-holdin... As of a few days ago, the PLAN (not yet executed) is to give Knighthead new shares and wipe out the current set of shareholders. --------- There is a rival plan to keep HTZGQ shareholders alive. These sorts of plans go back and forth, discussed by the board, the bankruptcy court, and so forth to determine the best course of action. No plan is ever 100% certain... not until the plan is executed. Still: the current plan is that Knighthead will be the new owners, old shareholders will be wiped out, and old bondholders will get 70%. If bondholders are only able to get 70% under the current plan, it seems unlikely that any alternatively proposed plan would bring that to 100% somehow (the precondition before old shareholders of HTZGQ to get value out of this...). The plans will change, but the amount of assets that Hertz owns will not change. So I'm not entirely sure where another 500-million buckaroos will come from to make the bondholders whole.

dragontamer 6y ago

Bankruptcy proceedings are still taking place and are not finalized. HTZGQ will probably go to zero soon, as what you say is almost certainly going to happen. https://www.prnewswire.com/news-releases/hertz-global-holdings-reaches-key-milestone-in-restructuring-files-plan-of-reorganization-and-disclosure-statement-301238331.html https://www.prnewswire.com/news-releases/hertz-global-holdin... As of a few days ago, the PLAN (not yet executed) is to give Knighthead new shares and wipe out the current set of shareholders. --------- There is a rival plan to keep HTZGQ shareholders alive. These sorts of plans go back and forth, discussed by the board, the bankruptcy court, and so forth to determine the best course of action. No plan is ever 100% certain... not until the plan is executed. Still: the current plan is that Knighthead will be the new owners, old shareholders will be wiped out, and old bondholders will get 70%. If bondholders are only able to get 70% under the current plan, it seems unlikely that any alternatively proposed plan would bring that to 100% somehow (the precondition before old shareholders of HTZGQ to get value out of this...). The plans will change, but the amount of assets that Hertz owns will not change. So I'm not entirely sure where another 500-million buckaroos will come from to make the bondholders whole.