Hertz, the car rental group facing bankruptcy, is looking to sell up to $1bn in stock to take advantage of frenzied trading in its shares, in an unprecedented move for a company whose solvency is in doubt.
The proposed cash infusion, outlined in a filing on Thursday, would help fund the companys reorganisation process and would come in lieu of the traditional senior loan most companies under Chapter 11 protection tap.
Hertz filed for bankruptcy protection in May after travel restrictions imposed due to the coronavirus pandemic effectively shut down air traffic around the world, hurting its rental activity at airports the lifeblood of its business.
Hertz shares reached $5.53 on Monday, implying a market value of above $700m, even as it…
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