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Anonymous ID: 982318 June 11, 2020, 8:27 p.m. No.9582199   🗄️.is 🔗kun   >>2411

Bankrupt Hertz wants to sell up to $1B in new shares after stock spikes

 

Hertz Global Holdings Inc. wants to capitalize on the rally in its stock seen earlier this week by selling up to $1 billion in shares, despite a bankruptcy that threatens to wipe them out.

 

Hertz's shares rose to $5.53 earlier this week, a nearly 10-fold increase over their closing price of 56 cents following the company's May 22 bankruptcy filing.

 

Now the company is asking a bankruptcy judge to approve a deal with Jefferies LLC to allow the potential sale of 246.8 million unissued shares.The price of Hertz stock has fallen from this week's earlier high, closing Thursday at $2.06 a share, but the company said its stock is still actively traded.

 

Hertz also said Thursday it plans to ask the U.S. Bankruptcy Court in Wilmington, Del., for permission to get out of leases for 144,372 vehicles, a move it says would save it about $80.3 million a month. Last year, its U.S. fleet peaked at 567,000 vehicles.

 

Jared Ellias, a law professor at the University of California Hastings College of Law, said he has studied hundreds of bankruptcies and never seen a company try to fund a case with an equity offering at the start of chapter 11.

Hertz shares trade on the New York Stock Exchange, which has moved to delist the company. Hertz has appealed the NYSE notice of delisting. Shares of bankrupt companies are typically worthless, save for rare instances in which the debt is repaid in full and money is left over for equity holders.

 

The shares would have to sell for more than $4 each for Hertz to hit $1 billion. Hertz's roughly $3 billion in corporate bonds were trading earlier this week at around 40 cents on the dollar, indicating little faith among creditors they will be repaid in full.

 

A Hertz spokesperson wasn't immediately available for comment.

https://www.foxbusiness.com/markets/bankrupt-hertz-wants-to-sell-up-to-1-billion-in-new-shares

 

from May 26th

Hertz gave $16M in bonuses ahead of bankruptcy

Hertz Global Holdings Inc. paid more than $16 million in retention bonuses to senior managers, including its new chief executive, just days before it filed for bankruptcy Friday night.

 

The car-rental company said it agreed to pay a $700,000 bonus to Chief Executive Paul Stone, who was named to the post this month. Chief Financial Officer Jamere Jackson received $600,000 and Chief Marketing Officer Jodi Allen got $189,633, according to a Tuesday regulatory filing. In all, Hertz said it would pay $16.2 million in cash bonuses to about 340 employees in recognition of uncertainty the company and its employees face as a result of the coronavirus pandemic's impact on travel.

 

Hertz is the latest troubled company to make payments to top executives before filing for bankruptcy. By paying bonuses before filing, the companies don't need bankruptcy court approval.

https://www.marketwatch.com/story/hertz-gave-16m-in-bonuses-ahead-of-bankruptcy-2020-05-26

Anonymous ID: 982318 June 11, 2020, 8:41 p.m. No.9582318   🗄️.is 🔗kun

Diet to approve record supplementary budget

 

Japan's Diet is expected to enact a second supplementary budget for the current fiscal year on Friday to respond to the impact of the coronavirus outbreak.

 

The economic package is worth 31.9 trillion yen, or more than 298 billion dollars, a record for a supplementary budget. The Upper House is expected to pass the bill on Friday afternoon after the chamber's budget committee approves it earlier in the day.

 

The budget includes a program to finance rents for businesses that suffer sales declines, as well as subsidies to help businesses pay some layoff benefits to employees. Lawmakers in the budget committee on Thursday discussed the economic fallout of the outbreak as well as the process of commissioning a private-sector implementation of financial measures to help businesses survive.

 

They will discuss the issues further on Friday, with all Cabinet ministers in attendance prior to the vote.

https://www3.nhk.or.jp/nhkworld/en/news/20200612_08/