It’s the version of David vs Goliath that Wall Street will like. Day traders, snapping up penny stocks on the popular Robinhood app, sought to defy decades of convention and make money on bankrupt rental-car company Hertz. The craze sent shares soaring as much as 896 per cent, prompting Hertz to briefly capitalise on the frenzy by issuing even more stock.

The conclusion, outlined on Tuesday in a reorganisation plan to end Hertz’s nine-month trip through bankruptcy proceedings, is a cautionary tale for the little guy.

Holders of Hertz shares, which traded for as much as $US2.53 just three months ago, will get nothing. Hertz’s lenders, who include some of Wall Street’s giants of distressed investing, will be paid in full after collecting millions in fees and interest payments for financing the company’s reorganisation.

The plan values the reorganised company at nearly $US5 billion ($6.4 billion), and fully repays Hertz’s first-lien and second-lien creditors. Unsecured bondholders would get the option to take a cash payout of 70 per cent of their investments’ face value or roll their debt into new financing, according to a Hertz statement.