their bonds trade for about 40 cents on the dollar which means bondholders don't think theyll make their money back. which means that there wont be anything left for equity holders.

so to be of help, they'd probably need to sell a lot of stock. That also dilutes existing owners as well.

I'll pay the bondholders 45 cents on the dollar TODAY and each equity holder $1/share to get their vote. As with any private sale, this all avoids the bureaucracy of a protracted bankruptcy (where accountants and lawyers get rich off what would get paid to the creditors).

Likely? No. Possible? Very.

If this "IBO" gives Hertz the breathing room to restructure, clean up, and come out the other side, then well done. If not, no one will be surprised. This is almost a "no lose" scenario from the Hertz side.

If this becomes systemic, that's when things get ugly. Imagine senior execs with a "plan" that they have no intent to execute on, making an offering, paying out its bonuses, and then saying "Oops, it died anyway! Sorry!"

The bondholders will benefit from this. But its extremely unlikely for shareholders to benefit. This is a company with $17+ Billion in debt, gaining +$1 Billion from a stock offering won't create any value for the shareholders.

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Lets do another perspective: If a $1 Billion loan would have fixed the Hertz company, then the company wouldn't need to go bankrupt. The bankers would have simply provided the company another $1 Billion in loans.