Hertz suspends plans for $500M stock sale pending SEC review

Hertz said Wednesday it has put its plans to sell $500 million worth of stock on hold because the offering is being reviewed by the Securities and Exchange Commission.

Trading in shares of the car rental company, which filed for bankruptcy protection last month, were halted before the announcement. The stock later resumed trading.

Hertz Global Holdings Inc., which is based in Estero, Florida, said Monday that it received approval from bankruptcy court to proceed with the stock sale. The sale would be an unusual move for a company in the throes of a bankruptcy reorganization and a very risky proposition for investors.

The company warned that investors who buy its shares face 'œsubstantial risks'ť that the stock they bought might be rendered worthless.

Even so, shares in Hertz have more than doubled this month.