What Happens to Investors if Hertz Is Delisted?
Hertz (NYSE: HTZ) stock has been a roller coaster ride since the company filed for Chapter 11 bankruptcy protection on May 22. Of late, this rental car company has been one of the more confusing and mystifying stocks in recent memory, including a highly speculative recent run-up in price, the company asking for approval to issue new shares while in bankruptcy, and a notice to be delisted from the New York Stock Exchange (NYSE).
Let's zero in on one of the least understood developments, a potential Hertz delisting, and what it means for investors.
On May 26, NYSE staff sent a notice to Hertz management saying that the company would no longer be suitable for listing on the exchange per NYSE Listed Company Manual Section 802.01D, which essentially says a company can be delisted if it files for bankruptcy protection, among other stipulations. Investors are still able to trade Hertz shares on the exchange because the company promptly filed an appeal and requested a meeting with the staff. Once that meeting takes place and the NYSE comes to a final conclusion, we will likely see Hertz officially delisted.
Source Fool.com
