Bankrupt Hertz targets Robinhood traders in plot to dump $1B in stock

Re:Bankrupt Hertz targets Robinhood traders in plot to dump ... by arkis22 on Friday June 12, 2020 @07:58PM (#23505230)

you're technically correct but its generally unlikely. equity holders get to keep money if there's money left after satisfying debts.

their bonds trade for about 40 cents on the dollar which means bondholders don't think theyll make their money back. which means that there wont be anything left for equity holders.

so to be of help, they'd probably need to sell a lot of stock. That also dilutes existing owners as well.

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Re:Bankrupt Hertz targets Robinhood traders in plot to dump ... by Scoundreller on Friday June 12, 2020 @08:35PM (#23505485)

Or a competitor comes along and figures, let's eliminate this competitor and merge their operation with ours, instead of it ending up in a bankruptcy auction and who knows who will win.

I'll pay the bondholders 45 cents on the dollar TODAY and each equity holder $1/share to get their vote. As with any private sale, this all avoids the bureaucracy of a protracted bankruptcy (where accountants and lawyers get rich off what would get paid to the creditors).

Likely? No. Possible? Very.

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Re:Bankrupt Hertz targets Robinhood traders in plot to dump ... by user5994461 on Saturday June 13, 2020 @01:16PM (#23510943)

Which competitor and where would it get the money from? They're all short on cash. There is no more revenues from car rental since the virus has terminated all personal and business travels.

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Re:Bankrupt Hertz targets Robinhood traders in plot to dump ... by Scoundreller on Sunday June 14, 2020 @09:41AM (#23517574)

Uber has $56b in market cap to work with.

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