Follow shares of Hertz Global Holdings Inc. their plunge to zero on Wednesday, one day after the car rental company unveiled a restructuring proposal to release a bankruptcy that will wipe out existing shareholders.
Shares of Hertz fell to 88 cents, losing 26% on the day. The fall marked the second day of brush loss for the company’s stock after Tuesday’s 28% drop to $ 1.19.
Under Hertz’s restructuring proposal, shareholders will not receive any redemption, meaning they will not be able to exceed the proposed contract. Hertz said they plan to be a private company when it leaves bankruptcy. The car rental company, one of many companies seriously injured by the pandemic coronavirus, went in for protection from a breach in May last year.
But unlike many companies whose businesses suffered as a result of stay-at-home restrictions, Hertz’s story took on new life after individual investors came into the stock. In an event that preceded GameStop Corp.’s surprise, individual investors raised shares of Hertz over several days in early June last year after the company entered into proceedings. chapter 11.
In the trading session after Hertz filed for protection against bankruptcy, shares fell to 56 cents. They then rose above $ 5.50 less than two weeks later – a nearly 900% rally. In the days that followed, however, shares declined. Since then they have traded below $ 2 this year before slipping below $ 1 on Wednesday.