Replies to post #3072 on Hertz Global Holdings Inc (HTZ)

[1manband]

HTZGQ is a guaranteed loser. The common stock is being cancelled without any payment to the existing holders.

I suggest you read the actual Plan filed with the court. It is free to read, and spells it out clearly.

https://restructuring.primeclerk.com/hertz/Home-DocketInfo?DocAttribute=4288&DocAttrName=PLANDISCLOSURESTATEMENT

"Under the Plan, the existing equity of Hertz Parent will be extinguished"

"Existing Hertz Parent Interests shall be cancelled and released without any distribution on account of such Interests."

That should be 100% clear - the existing common stock is worthless.

HTZGQ is going to $0. Anyone holding these common shares will lose 100% of their investment.

[Euripides90]

The more-financial-news-plays-up-scare-relying-on-analysts-to-provide-cover-for-shorts, the more skeptical I am.

Who wouldn't have liked to buy American Airlines at 25c? Kodak? Who wishes they had bought more Netflix when the "experts" predicted it would be wiped out because of its old model - then it reinvented itself? (I'm well aware that Netflix isn't a formerly BK/ re-organizing co. but its demise was predicted then it soared.)

What my "take" is on this person is that she's been trying to take down the stock by pretending to "help" and preventing trading.

Are naive traders taken advantage of? All the time but more by lying CEO's and management who suddenly dilute or R/S wiping them out.

Shareholder Wipeout: Under the terms of the bankruptcy deal, Hertz will be acquired by Knighthead Capital Management and Certares Management for $4.2 billion, leaving common shareholders with no remaining ownership stake in the company. This type of shareholder wipeout is typical in the bankruptcy process of large public corporations, according to Bloomberg.

“To be clear: HTZGQ is 99% likely to be worth zero – yet yesterday it closed at $1.18, giving it a $185 million market cap,” Tilson said Wednesday.

Tilson said absolutely no sophisticated or institutional investors still owned Hertz stock following the bankruptcy plan news, yet its share price was still above 90 cents as of Wednesday morning. He said the entirety of that $185 million market cap will be lost by “average folks” and on Reddit, Robinhood and other platforms who misinformed or misguided about the situation.

Tilson called on the U.S. Securities and Exchange Commission to restrict trading in bankrupt companies in the future to institutional investors only to help better protect retail traders in the future.

Benzinga’s Take: Tilson has been all over the ridiculous trading in bankrupt Hertz since June 2020, when the stock was trading at $4.18. At the time, Tilson called the stock a “zero” when it gained 115% in a single day even after its bankruptcy filing. Maybe she should just sit back and watch instead.
And Hertz's Euro operations and some businesses aren't even part of the deal.