Billionaire investor Carl Icahn has sold out ofHertz Global Holdings Inc., the rental-car company that filed for bankruptcy last week and counted him as its biggest shareholder.
“Hertz has encountered major financial difficulties and I support the board in their conclusion to file for bankruptcy protection,” Icahn said in aregulatory filing Wednesday. “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.”
A holding company controlled by Icahn, 84, held more than 55 million shares of Hertz as of the end of the first quarter, a roughly 39% stake, according to data compiled by Bloomberg. Icahn described himself as “an investor and supporter of Hertz since 2014,” when his holding company beganbuilding its position.
“I believe that based on a plan of reorganization that includes new capital, Hertz will again become a great company,” Icahn said. “I intend to closely follow the company’s reorganization and I look forward to assessing different opportunities to support Hertz in the future.”
Read more: O.J., Accounting Fraud, Icahn: The Story of Hertz Going Bust
Icahn wasn’t immediately available for comment. Hertz shares fell as much as 13% to $1.14 after the close of regular trading.
Source: Read Full Article