Morgan Stanley sets base case for Hertz at zero, sees small chance equity holders get some value

The desk of car rental company Hertz is seen at Nice International airport during the coronavirus disease (COVID-19) outbreak in Nice, France, May 27, 2020.
Eric Gaillard | Reuters

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Shares of bankrupt car rental company Hertz are likely going to zero, leaving shareholders with nothing, according to Morgan Stanley. 

The stock has been the source of speculative trading in recent weeks, swinging wildly since it filed for Chapter 11. The interest in the stock led to a short-lived plan by the company to do a secondary stock offering, which raised concerns at the Securities and Exchange Commission.

Morgan Stanley did leave the door open of a "bull case" which allows for Hertz equity holders to recover some value.