Hertz Global Holdings, Inc. declared this week that its future is looking bright as the rental car company emerged from Chapter 11 bankruptcy more than a year since filing to restructure after being pummeled by low demand when the coronavirus pandemic hit.
In a news release on Wednesday, the 103-year-old firm stated that it "has emerged as a financially and operationally stronger company," boasting of more than $5.9 billion in new equity capital thanks to its new group of investors led by Knighthead Capital Management LLC and Certares Management LLC.
"Faced with the epic and unprecedented challenges presented by the COVID-19 pandemic, and unfazed by early leadership changes, we stayed focused on stabilizing the business and seizing opportunities to mitigate losses and create value for our stakeholders," Hertz's outgoing Board of Directors Chairman Henry Keizer said in a statement. "When the economy began to show signs of recovery earlier this year, we were perfectly positioned to drive a competitive process that would maximize recoveries. The result – paying our nearly $19 billion of creditors in full and returning substantial value to our shareholders – is remarkable."
The company noted that the judge who signed off on their restructuring plan on June 10 stated that the outcome "surpasses any result that I've seen in any Chapter 11 case that I've faced in my 20-plus years."
Hertz – which has traded over-the-counter under the ticker HTZGQ for the past eight months or so after being booted from the New York Stock Exchange in October – began trading over-the-counter under the new ticker HTZZ on Thursday.
The new stock opened at $22 and took off out of the gate, rallying up to $33.80 – but that was the peak of the day. HTZZ then took a nosedive down to $16.25, before climbing back to finish the day at $26.31.