Today is the day that Hertz Global Holdings (OTCMKTS:HTZGQ) is going to come out of bankruptcy and it is no surprise to see that the stock has managed to clock gains of 36% over the course of the past week.
The car rental company had been the subject of a bidding war between two groups of investors not too long ago and after it was finally settled, the countdown for the end of the company’s bankruptcy had started. Earlier on this month, the company’s reorganisation plan had also been approved by the bankruptcy court and thereby cleared the way for Hertz to finally come out of bankruptcy.
In case of restructurings, the possibilities of the business bouncing back after a prolonged slump are some of the reasons why investors remain interested. As part of its restructuring efforts, the company is going to pay off as much as $5 billion of its debts and in addition to that, it will also get $2.2 billion in the form of fresh liquidity.
These steps are not only going to help the company in strengthening its balance sheet considerably but also help in providing it with the necessary cash through which it can spark further growth.
Market Reaction:
As of 10:59, HTZGQ stock jumped 6.30% to $9.41 with more than 2.75 million shares, compared to its average volume of 8.57 million shares. The stock has moved within a range of $9.00 – 9.75 after opening the trade at $9.55. Over the past 52-week, the stock has been trading within a range of $0.41 – 9.87.
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