The stock of Hertz Global Holdings Inc (OTCMKTS: HTZGQ) rose to $7.91. The company exits chapter 11, a move that plunges the mom-and-pop investors in a precarious situation. The amateur traders find it rather strange that the company’s latest move only favors the wealthier investors.
Handling investors
However, the company indicates that all its shareholders should expect payment as it makes its way out of chapter 11. It intends to pay them with a mix of securities and cash.
The company makes the statement referring to payments to be made from the re-organized business. The other thing is that the shareholders will be entitled to buy stock in future.
The shareholders stare at tough times ahead. For instance, they need to make up their mind on several matters. One of the things they need to make up their minds about is the buying of additional stock. However, the move to buy the additional stock will be tied to a chain of eligibility standards. One of those standards happens to be personal wealth.
Where do shareholders stand?
Most of the company’s prospects have undergone dramatic revival over the recent months, and thus it has been in rather unusual situation. The most challenged persons in such a case scenario as mentioned earlier happen to be the shareholders.
It isn’t the first time that such a thing is happening, and the shareholders don’t seem to matter a great deal during the bankruptcy instances. Most Company’s going through such a phase outline that they lack enough value to repay creditors.
Hertz is widely known for its black and yellow cars, with most of them offering services in airports. It beats logic that the century-old company that has been showcasing stellar performance over the years is undergoing a bankruptcy phase. It is in court seeking out protection against its creditors.
 Amateur Investors Suffer A Bankruptcy Process Not Meant For Them){kind=link}