Shares of Hertz surged Friday morning on unusual plans for the bankrupt company to sell up to $1 billion in shares, a last ditch effort for it to raise capital even though the value of the stock could get wiped out.
During premarket trading, shares were up more than 70% to $3.56 before leveling off to open at $3.21 – the latest speculative surge since the company filed for bankruptcy on May 22. Shares were lower but still up about 35% in trading to $2.78.
The car rental firm in a public filing Thursday asked the bankruptcy court to potentially sell 246.8 million unissued shares to Jefferies LLC.
“The recent market prices of and the trading volumes in Hertz’s common stock potentially…