US Markets

Bankrupt car rental firm Hertz secures $1.65 bln in financing, shares soar

Credit: REUTERS/EDGARD GARRIDO

Bankrupt car rental company Hertz Global Holdings Inc said on Friday it had lined up $1.65 billion in debtor-in-possession financing, sending its shares soaring.

Oct 16 (Reuters) - Bankrupt car rental company Hertz Global Holdings Inc HTZ.N said on Friday it had lined up $1.65 billion in debtor-in-possession financing, sending its shares soaring.

Hertz plans to invest up to $1 billion in vehicle acquisitions in the United States and Canada, and up to $800 million for working capital and general corporate purposes.

The financing will be provided by some of the company's creditors, Hertz said. It has filed a motion for approval of the financing by the U.S. Bankruptcy Court for the District of Delaware.

The more than a century old company's shares jumped 96% to $2.02 in premarket trading.

Hertz filed for bankruptcy protection on May 22 after its business was decimated during the coronavirus pandemic and talks with creditors failed to result in much-needed relief.

(Reporting by Shreyasee Raj in Bengaluru;Editing by Maju Samuel)

((Shreyasee.Raj@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

HRI

Latest US Markets Videos

Nasdaq's Essner on OPEC+, Oil Market Outlook

Dec 03, 2021

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More