FILE PHOTO: Logos of car rental company Hertz are seen outside Paris Charles de Gaulle airport in Roissy-en-France during the outbreak of the coronavirus disease in France May 19, 2020. REUTERS/Charles Platiau/File Photo
Raising money through a share sale would be less expensive for Hertz, which was bleeding cash as travel and car rentals plunged, than tapping a costly bankruptcy loan that most companies in its situation use to navigate court restructurings. The internal Hertz deliberations offer a window into the contours of the ethical and regulatory dilemmas they face. Namely, can they sell stock to raise capital in such a volatile market?
Unlike Hertz, these companies are not under bankruptcy protection. So far, they are taking different approaches. AMC did not respond to a request for comment. In late January, Chief Executive Adam Aron said recent fundraising meant “any talk of an imminent bankruptcy for AMC is completely off the table.”That was the dilemma Hertz faced last spring. The company filed for bankruptcy last May, crumbling under roughly $19 billion of debt as the pandemic decimated its business.
Some Hertz directors saw an opportunity to bolster its cash coffers with a stock sale. But some in the management, along with other directors, pushed back over concerns the shares were virtually worthless and any offering would take advantage of small-time investors unfamiliar with bankruptcy law, the sources familiar with the discussions at the time said.
Says the delisted otc stock!
Once a stonk, always a stonk.
Well fuck
Are you implying that increasing the valuation of a company by a ridiculous amount, based on the whims of a mob might be problematic?
... but unironically
nice
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