The SEC told bankrupt Hertz it has issues with its plan to sell stock, Chairman Jay Clayton says
The Securities and Exchange Commission told Hertz that the regulator has issues with its plan to sell stock while the rental car company is in the middle of bankruptcy proceedings.
In this particular situation we have let the company know that we have comments on their disclosure, SEC Chairman Jay Clayton said Wednesday on CNBCs Squawk on the Street. In most cases when you let a company know that the SEC has comments on their disclosure they do not go forward until those comments are resolved.
Hertz said in a securities filing with the SEC on Monday that it would seek to sell $500 million in stock. In quite an unusual disclosure in that filing, the company told potential investors that they would likely lose their money.
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Trading activity in names like Hertz has spiked on millennial-favored stock trading app Robinhood in the days following the bankruptcy filings, according to Robintrack, which tracks Robinhood account activity but is not affiliated with the company.
https://www.cnbc.com/2020/06/17/the-sec-told-bankrupt-hertz-it-has-issues-with-its-plan-to-sell-stock-chairman-jay-clayton-says.html
FTR, the stock
spiked after this story was released and trading is now halted.
For a correlating thread, see my post from 6/12:
https://www.democraticunderground.com/100213585398
But Cramer said there really is nothing driving that kind of move in a stock that has been so impacted by the Covid-19 crisis and faces a rocky future. He also pointed to the recent action in bankrupt car rental company Hertz, as well as Carnival Corp. Hertzs stock was up more than 50% to above $3 each Friday, while shares of cruise line Carnival were up about 12% in the premarket.