An exterior view of Hertz Car Rental during the coronavirus pandemic on May 23, 2020 in New York City. COVID-19 has spread to most countries around the world, claiming over 343,000 lives with over 5.4 million infections reported.
Cindy Ord | Getty Images
Hertz stock halted trading Wednesday pending news amid the bankrupt company’s controversial stock sale.
“In this particular situation, we have let the company know that we have comments on their disclosure,” SEC Chairman Jay Clayton said on CNBC’s “Squawk on the Street” on Wednesday. “In most cases when you let a company know that the SEC has comments on their disclosure they do not go forward until those comments are resolved.”
Shares were trading down about half a percent to $1.94.
Hertz filed for bankruptcy May 22, hurt as demand for car rentals dried up as travelers have stayed home during the coronavirus pandemic. The stock hit a low of 40 cents intraday on May 26. But in the days ahead, shares began to recover and eventually surged to more than $6 per share last Monday.
Following the increase, Hertz asked the bankruptcy court Thursday to allow it 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. The request was approved by the court Friday.
– CNBC’s Maggie Fitzgerald contributed to this report
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