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.
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.