Carl Icahn Exits Bankrupt Hertz at Loss of Almost $1.6 Billion
After Hertz Global Holdings Inc. filed for bankruptcy last week, Billionaire Carl Icahn sold off his investments in the company and accepted a loss of around $1.6 billion, according to Yahoo! Finance.
As stated in a regulatory filing, the 84-year-old investor sold all of his 55.3 million shares in Hertz on Tuesday at a selling price of 72 cents a share. Icahn’s holding in Hertz equated to 39 percent of Hertz’s stock. The loss ends Icahn’s six-year gamble with the company. Since his 2014 entry into the company, Icahn saw Hertz go through 4 CEOs. Also, Hertz’s debt grew leading up to the pandemic due to constant management issues, resulting in its bankruptcy once the pandemic significantly reduced travel and revenue.
In the Wednesday filing, Icahn said, “Hertz has encountered major financial difficulties and I support the board in their conclusion to file for bankruptcy protection. Yesterday I sold my equity position at a significant loss, but this does not mean that I don’t continue to have faith in the future of Hertz.”
Late trading saw Hertz shares drop 21 percent to $1.04 and at the close Hertz’s market capitalization ended up being around $186.1 million.
Icahn added, “I believe that based on a plan of reorganization that includes new capital, Hertz will again become a great company. I intend to closely follow the company’s reorganization and I look forward to assessing different opportunities to support Hertz in the future.”