Car rental company Hertz Global Holdings Inc (OTCMKTS:HTZGQ) was in considerable focus in the markets last week after the company announced that its plan of reorganization had been accepted by the Bankruptcy Court.

That was the main trigger that saw the stock deliver gains of as much as 10% last week. However, in this regard, it is also necessary to point out that the Hertz Global stock has performed well since April and up until now it has gained as much as 500%. The reorganization plan from Hertz has already been approved by as many as 97% of all its shareholders.

It is a major development for the company in a number of ways. The approval from the Bankruptcy Court has also paved the way for Hertz Global to come out of bankruptcy by the end of this month. More importantly, the restructuring of the company is also going to help in strengthening the balance sheet considerably.

In addition to that, the company is also going to have much more financial freedom than it had in the past. It is necessary for investors to keep in mind that Hertz Global’s finances had been in tatters after its business was wrecked by the coronavirus pandemic. That eventually forced the company to file for bankruptcy.

As per the provisions of the reorganization plan from Hertz Global, the company is going to pay off debts to the tune of $5 billion and that is also going to include the entirety of its European corporate debt. In addition to that, the plan is also going to provide $2.2 billion in the form of global liquidity.

The company has been in major focus for the past weeks since it had been the subject of a bidding war between two groups of investors who were looking to bring it out of bankruptcy. It was finally resolved last month and it now appears that Hertz Global is going full tilt towards a new chapter.