Re:Bankrupt Hertz targets Robinhood traders in plot to dump ...
by dragontamer on Friday June 12, 2020 @07:37PM
(#23505050)
Almost all restructurings (Chapter 11 Bankruptcy) results in the share price dropping to $0.
The bondholders will benefit from this. But its extremely unlikely for shareholders to benefit. This is a company with $17+ Billion in debt, gaining +$1 Billion from a stock offering won't create any value for the shareholders.
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Lets do another perspective: If a $1 Billion loan would have fixed the Hertz company, then the company wouldn't need to go bankrupt. The bankers would have simply provided the company another $1 Billion in loans.
The bondholders will benefit from this. But its extremely unlikely for shareholders to benefit. This is a company with $17+ Billion in debt, gaining +$1 Billion from a stock offering won't create any value for the shareholders.
---------
Lets do another perspective: If a $1 Billion loan would have fixed the Hertz company, then the company wouldn't need to go bankrupt. The bankers would have simply provided the company another $1 Billion in loans.