Hertz Global Holdings Inc. has lined up $1.65 billion in financing to carry itself through bankruptcy, sparking a market rally that more than doubled the rental-car company’s share price, WSJ Pro Bankruptcy reported. The shares rose as high as $2.86 cents after the company announced the financing package from Thursday’s closing price of $1.03, reflecting the continued interest in Hertz from risk-hungry traders despite its severe financial strain. By early afternoon, the stock was trading at $2.15. Hertz said that the new financing will give it more financial flexibility as it deals with fallout from the novel coronavirus pandemic and its impact on travel. The company’s shares went on a gravity-defying rally after it filed for protection from creditors in May, even though the chapter 11 filing put the equity at high risk of becoming worthless. Hertz tried to capitalize on the market anomaly by issuing new stock, a seemingly unprecedented move for a bankrupt company to raise inexpensive capital. Hertz suspended the stock sales after the Securities and Exchange Commission raised questions, but not before issuing $29 million in equity. The company then turned to lenders for additional financing, which must be approved by the U.S. Bankruptcy Court in Wilmington, Del.
