Now that it looks like from managements maneuvering that bankruptcy is certain to happen very soon, what are the odds it could go directly to Ch 7 instead of Ch 11.
There was an analyst stating it could line up that way because of the abnormal amount of debt they are dealing with.
This would mean all stockholders would have zero value.
8 replies (most recent on top)
@a2 Hertz doesn’t actually own cars. It holds the certificate of title to vehicles that are provided to it under a complex floor plan-type financing arrangement. They are closer to a car dealer in that the inventory is financially not on their books, only sales count.
@OP There is not one source of data online that provides the guidance that Xerox will move into bankruptcy as a certainty. Expert sources appear to show this as between a 36% - 46% chance. High but not certain. Commentators such as the FT, do discuss how Xerox and other companies in a distressed position can use different types of bankruptcy and suggest this could be a relevant way of dealing with its current issues, but again do not provide the view that this is certain. In fact, reviewing the FT's article of March 27th, where these tactics are discussed, also notes how the most recent move by Xerox with its IP actually leads to the idea that bankruptcy is not the current route.
You had served value on day one at Xerox.
That’s why i told you to leave, as your worth would increase immediately.
Yawwwwwnnnnn….
@a4 We find out on 8/15 who owns what.
That is the Q2 reporting due date for ownership on 6/30/26. The previous Q clocked in at ~79% institutional ownership as of 3/31/26,
If that number clocks in, near, or below 50%, that is bad. The institutional investors held this through everything, and if they bail (and people can see they bailed), that is the ballgame.
Why would any large investor be holding anything if filing could happen any day now?
What analyst said that? Do you have a name or link?
All stock holders have 0 value in CH 7 or 11. Probably CH11. Either way, equity is wiped out.
"But what about Hertz? They kept trading?"
Right, Hertz has billions of dollars of assets that have a defined market value and can be readily sold; the cars. Xerox does not. Equity will be wiped out.