Insiders at Hertz, which last week shocked Wall Street with its well-financed bankruptcy-exit plan, are already plotting to take revenge on the New York Stock Exchange for kicking it when it was down, On the Money has learned.
The car-rental giant, which last week scored enough funding to repay its lenders and still have money left over for stockholders, is on track to emerge from bankruptcy at the end of June.
The unexpected victory has Hertz insiders dreaming of the day they can relist the company’s shares with the NYSE’s fiercest rival — the Nasdaq, a person close to the company said.
“We were NYSE and they delisted us, and there was an argument,” the source said. “They rejected our appeal, and so my money is on us listing with Nasdaq.”
Shares of NYSE-listed Hertz plunged last year as global travel ground to a halt due to the coronavirus pandemic, forcing the company to file for bankruptcy May 22, 2020.
Four days later, the NYSE told Hertz it planned to delist its shares, saying the stock, which closed the day before at $2.84 a share, had no value. According to its rules, the NYSE can delist a company that files for bankruptcy at its discretion.
Hertz appealed and requested a hearing, but the NYSE stuck to its original determination and delisted Hertz in late October, pushing the stock to trade on the less liquid over-the-counter market. It closed there Wednesday at $5.73 a share.
An NYSE spokeswoman declined to comment, and Hertz, which, sources said, is expected to largely keep its management team, did not return calls.
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