What happened
An unlikely gainer given its present circumstances, Hertz Global Holdings (NYSE: HTZ) ended the week with a 4% rise in its share price on Friday.
This followed a report in The Wall Street Journal stating the bankrupt vehicle rental company has been reaching out to potential creditors for bankruptcy loans totaling up to $1.5 billion. The article, which cited "people familiar with the matter" as its sources, did not name any of these would-be lenders.
Image source: Getty Images.
So what
Bottom-feeding investors seem to feel Hertz is too big and too prominent to fail -- despite the fact that it operates in one of the industries worst-hit by the pandemic, and the fact that it's weighed down with around $19 billion in debt.
Perhaps these investors are comforted by the idea that the company is seeking less than one-tenth that amount; maybe this indicates that the company still has much of the resources it needs to escape bankruptcy on its own. Some might also find it encouraging that Hertz is proactively seeking lenders, although this seems like a necessary move for a business in its position.
Now what
If Hertz is indeed looking for emergency debt financing, it wouldn't be its only recent attempt at raising funds. The company scotched a previous plan for a $500 million common stock offering after it drew scrutiny from the Securities and Exchange Commission. Hertz remains a business in very deep trouble, and it's going to need some heavy lifting to get hauled out of that ditch.
10 stocks we like better than Hertz Global Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Hertz Global Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 1, 2020
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
