The money-leasing car rental company had said it would halt stock sales after the Securities and Exchange Commission raised questions about the deal. But apparently it sold some shares before the SEC took action.
It has been an all-out deal.
But late Monday, Hertz revealed for the first time that it had sold 13.9 million shares for more than $ 2 each before the SEC took action. That raised $ 29 million.
The investors who bought those shares are not doing well. Shares of Hertz closed at $ 1.69 on Monday, up 12% on the day. But those new shares were still 19% since Hertz’s share sale. The stock was down 5% in premium trading on Tuesday.
And Hertz warned in the same submission that all of its shareholders will almost certainly be removed as part of the bankruptcy process. That is typically what happens during a bankruptcy.
While some investors were apprehensive about buying the shares, even after filing for bankruptcy, many executives at Hertz have sold their shares since filing for bankruptcy. And its primary shareholder, Carl Icahn, sold all his shares days after the submission and took a $ 2 billion loss on his investment.
The company also revealed that revenue fell 67% in the second quarter, and that it lost $ 847 million during the period.
It said car rental has modestly improved as air travel has picked up since April. But the biggest improvement in circumstances since its filing for bankruptcy has come from the improved market for used car sales. The company said its fleet of cars was about 30% of annual levels because it sold cars to raise cash.
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