After Herz, a car-rental company based in Florida, filed for bankruptcy in May 2019, some bankers "jokingly" said that they "hope the company would sell a few hundred million worth of stock."
Unfortunately, it seems that this fit of sarcasm is slowly becoming a reality after judge Mary Walmarth ruled a bankruptcy court in favour of Herz, giving the newly bankrupted company green light to go on with the opportunistic sale (or at least try-out) of up to $1 billion in worthless stock to maniac daytraders and naive investors.
There is still hope though, that the U.S. Securities and Exchanges Commission will intervene to stop this travesty of a sale from taking place, despite the company telling at the court that it would label its stock as and warn investors that "common stock could ultimately be worthless."
Chances are, however, very low that this will happen. In the meantime, Herz selling of bankrupted stocks is expected to give the company a 3% of the offering, meaning that if Herz manages to sell all of its 1 billion worthless stocks it will manage to get a hook on 3 million.
If this is cannot be categorized as one of the most absurd moments in Capital Markets History, we don´t know what could!
Original source here (Zero Hedge)