When COVID-19 brought travel to a halt Hertz lost its revenue stream, forcing the company into ... [+] bankruptcy. Initially founded in 1918 with a fleet of 12 Model T automobiles, Hertz filed for bankruptcy protection on May 22. As with nearly every bankruptcy, Hertz equity holders will ultimately receive little, if anything, in exchange for their old pre-petition shares when the dust settles. Since the ABS entity was designed to operate independently of Hertz, it was able to earn higher credit ratings and thus provide Hertz with a much lower cost of credit than if Hertz simply borrowed money directly to buy or lease vehicles. In any event, the SEC finally jammed the brakes on this plan and shut down the ATM!

Source: Forbes June 19, 2020 18:42 UTC