A hedge fund darling could be in trouble…
Hertz did not file its Form 10-K annual report for the fiscal 2014 with the Securities and Exchange Commission (SEC) on time. Rule 802.01E of the NYSE Listed Company Manual requires a timely filing of Form 10-K annual reports with the Commission.
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Hertz’ financial review and investigation are still ongoing
Hertz failed to submit its 2014 annual reported on-time because it is conducting a thorough review and investigation of its financial records for the fiscal years 2011, 2012, and 2013.
The car rental company explained that its financial review and investigation was still ongoing, which is the primary reason for its failure to submits its 2014 Form 10-K on March 17, the extended due date for filing.
Hertz cannot assure that its financial review and investigation will be completed before the middle of 2015. The car rental company continues to expect that it will not be able to file its updated financial statements including its 2014 Form 10-K by that time.
Hertz has until September to fix its filing delinquency
According to Hertz, it has until September 17, 2015 to fix its filing delinquency related to its 2014 Form 10-K. The NYSE has the option to extend the initial cure period for up to six months after the September 17 deadline.
Hertz said it could regain compliance during the cure period by filing its 2014 Form-10K and subsequent Form 10-Qs with the SEC subject to the ongoing review and oversight of the NYSE.
The NYSE may commence proceedings to delist Hertz if it fails to submit the necessary regulatory filings with the SEC by the expiration of any applicable cure period.
Hertz believes that it will remain listed on the NYSE. The company emphasized, “there can be no assurance” that it will be able to file the SEC filings within the initial cure period or any extended cure period.
“The NYSE maintains the ability to commence delisting procedures at any time during the cure period, but as of today we do not believe the NYSE will do so,” said Hertz.
Hertz stock performance
The shares of Hertz closed $21.08 per share, down by more than 2%. The stock further declined by 1.57% to $20.75 per share during the extended-hours trading on Tuesday.
Over the past 52-weeks, Hertz traded between $18.50 and $31.61 per share. The company lost more than 23% of its stock value over the past year.
The stock is a favorite among many large hedge funds. Barry Rosenstein’s JANA Partners and Carl Icahn’s IEP Partners are among the largest owners of company. See the full list below