I told you buying Bankrupt Companies is Dangerous - Now they want to tell the truth

Hertz says it expects stockholders to lose all their money in filing for selling more stock

Hertz said Monday that equity holders won’t see a recovery unless those with higher priority, such as the company’s debt holders, are paid in full.

And that, the company said, would only happen if there is an astounding change in the progress of Covid-19 and a significant turnaround in travel trends. 

Hertz Global Holdings warned potential buyers in its common stock offering that it’s almost certain that the equity will become worthless.

Hertz said in a government filing Monday that it would sell up to $500 million in common stock. In that very same filing, the company said those shares won’t be worth anything unless those with higher priority in a bankruptcy, such as the company’s debt holders, are paid in full. And that, the company said, would only happen if there is an astounding change in the progress of Covid-19 and a significant turnaround in travel trends.