Bankrupt rental car company Hertz (HTZ) had a highly unusual plan to raise money: Last week it said it was hoping to sell stock, even though shares could soon be delisted and eventually turn out to be worthless.
But the Securities and Exchange Commission has apparently put the kibosh on that.
Hertz, whose shares were halted just before noon for pending news, revealed in a regulatory filing late Wednesday afternoon that the SEC's Division of Corporation Finance told the company Monday about plans to review the offering.
Hertz "promptly suspended" the stock sale "pending further understanding of the nature and timing of the [SEC] review," the company said in its filing.
The stock was down slightly before it was halted, and it was flat in choppy action after trading resumed right before the closing bell.
Hertz has been an extremely volatile stock since the company filed for Chapter 11 protection in late May, but shares are still higher than where they were shortly after it went bankrupt.
Hertz is just one of several bankrupt companies whose shares have surged recently -- a curious phenomenon that some fear is a sign that speculative investors are embracing too much risk.