Hertz's Aborted Ch. 11 Stock Sale Smacks Of Securities Fraud
Law360 (June 19, 2020, 6:21 PM EDT) -- On June 18, Hertz Global Holdings Corp. — which filed for Chapter 11 bankruptcy protection on May 22 — abandoned its plan to issue post-filing, preconfirmation common stock to public investors.
Hertz's bankruptcy lawyers had obtained approval just under a week earlier to sell Hertz common shares in an at-the-market offering to raise money for the estate even as the lawyers admitted they could not explain why the apparently worthless stock continues to trade at significant value.
Not surprisingly, the U.S. Securities and Exchange Commission expressed concern with the offering and Hertz's directors gave up on the plan.
The involved parties...
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