Over the past weeks, car rental company Hertz Global Holdings (OTCMKTS:HTZGQ) has been in major focus among many investors and managed to record considerable gains.
The company had declared bankruptcy last year due but things have turned around quite dramatically in recent times. Hertz not only found a consortium of investors following a bidding war recently but it is expected to emerge from bankruptcy on June 30, 2021. In the lead-up to the crucial day, investors seemed to have decided to pile on the Hertz stock in a big way. On Monday, the stock was on the move again and ended the day with gains of as much as 31%.
In this situation, it is quite likely that the stock is going to stay in sharp focus over the coming days. Not too long ago the company had announced that the bankruptcy court accepted its restructuring plan and went on to state that it would b coming out of bankruptcy on June 30.
The most important thing to keep in mind with regards to Hertz is that the company had to declare bankruptcy as its car rental business collapsed due to the effects of the coronavirus pandemic last year. In its reorganization plant, the company has decided to wipe out debts to the tune of $5 billion straightaway. This move will give the company $2.2 billion in the form of liquidity. Hertz has stated that the company’s balance sheet is going to be strengthened due to the restructuring.